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submitted 1 year ago by serenitynot@beehaw.org to c/news@beehaw.org

'Unlike some of the 3P [third-party] apps, we are not profitable,' Steve Huffman says in defending the move to charge for high-volume API access.

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[-] Thrashy@beehaw.org 31 points 1 year ago* (last edited 1 year ago)

Laughable, maybe, but not surprising. Since the Web 2.0 boom started picking up, the game for tech startups has always been to attract users as fast as possible, profits be damned, and hope a FAANG buys you out for your userbase before your VC money runs out. Post-Great Recession, debt has been near as makes no difference free, so VCs have been willing to extend very long runways to the companies they invest in, but with interest rates going sharply up the music has stopped and it's time for companies like Reddit to show they can become profitable or else.

this post was submitted on 11 Jun 2023
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