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Why does the internet seem "broken"? And why the giants of technology like "Uber, Amazon, Netflix" are losing their luster

Digital meltdown: Why tech giants are losing their luster

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Photo: Pexels / Anastasia Shuraeva

In a digital world where technology is supposed to make life easier, the user experience on popular platforms like Amazon, Uber and Netflix only seems to be getting worse. This article explores how and why this is happening and what we can do to reverse the trend.

Whether you're ordering food, looking for transportation, or choosing the next series to binge-watch, digital services have become part of our everyday lives. However, tech giants such as Amazon, Uber and Netflix, once considered pioneers in the industry, now seem to be a source of frustration and disappointment. From aggressive subscription models to hidden costs, what happened?

term"ification,” popularized by Corey Doctorow, details a gradual shift in the strategies of tech companies, moving from an initial phase of advocating for an exceptional user experience to strategies that drain value from their users. This process starts with companies entering the market with innovative solutions that offer great value to users, such as low prices, cutting-edge technology or new functionalities that improve everyday life. With this approach, they quickly attract a large number of users and build a loyal base.

But once companies reach a critical mass of users and establish themselves as dominant players in the market, their business model begins to change. Their focus shifts from satisfying user needs to maximizing shareholder returns. This often involves raising prices, introducing additional paid services that were previously part of the basic package, and reducing the quality of services in order to reduce operational costs. As part of this transformation, less transparent practices may also appear, such as misleading advertising or changes in privacy policies that are difficult for users to detect or understand. These changes in business strategy often lead to frustration among users who feel that the quality of service they once valued is declining while costs are rising. This widens the gap between user expectations and the actual value they receive, which can damage a company's reputation and trust in the long term.

The case of Uber: a transportation revolution that is now worse than the local taxi company

Photo: Pexels / freestockorg

Uber is an example of a company that revolutionized the taxi service industry by introducing an innovative app that allows users to call a ride with a few clicks on their smartphone. Their initial success was based on an exceptional user experience that included fast response times, friendly drivers, clean cars, and above all, significantly lower prices compared to traditional taxis. This strategy quickly gained Uber a large number of users and thus a significant market share. However, as the company consolidated its position in the market, it began to focus on maximizing profits, often at the expense of drivers and passengers.
One of the most controversial practices that Uber introduced was dynamic pricing or “surge pricing”. This mechanism automatically raises prices when demand for rides is high, such as during rush hours, major events in the city, or bad weather. Initially, the feature was introduced as a way to incentivize more drivers to respond to increased demand, but it has become less transparent over time. Users often found themselves in a situation where prices suddenly jumped to a multiple of the normal tariff without a clear understanding or prior warning as to why this happened.

This lack of transparency and the feeling that they are being exploited has led to many complaints from users. Despite this, Uber continued to use and expand its dynamic pricing strategy as it significantly increased their revenue, especially around the time the company was considering an initial public offering (IPO). Critics argue that Uber's focus on profits has led to decisions that have harmed both long-term user loyalty and the satisfaction and well-being of its drivers. This model has sparked a debate about the ethics of business practices in technology-driven companies, where the user is often in a subordinate position in relation to powerful algorithmic valuation and decision-making systems.

Netflix and the illusion of subscriptions

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Once hailed as a revolutionary streaming platform, Netflix gave users unlimited access to a vast library of movies and series for a relatively low monthly fee. This model was attractive because it offered a simple, affordable and predictable price without additional costs or restrictions. However, over time, Netflix, under pressure to increase profits and compete in a saturated streaming service market, began to change its pricing model.

The introduction of several price levels was presented as a way to adapt to the different needs and preferences of users. At first glance, this seemed to give users more choice, as they could choose between basic, standard and premium subscription packages, which differed in video quality (from SD to 4K HDR) and the number of simultaneous streams allowed. However, this segmentation often led to confusion and dissatisfaction as users were forced to pay higher subscription fees for features that were previously included in the basic package.

Adding ads to some of its subscription packages was another controversial move that affected user experience. Although ad-supported subscriptions were cheaper, many users felt that this degraded the quality of the service, which was originally promoted as an ad-free experience. This change particularly affected those who valued uninterrupted viewing of their favorite series and movies.

These changes in Netflix's business strategy reflect a broader trend of "ification" in the tech industry, where companies are gradually reducing the value of their services to existing subscribers while trying to maximize their profits. This not only erodes user trust and satisfaction, but also calls into question the long-term sustainability of such business models, as users become increasingly critical and willing to seek alternatives that are more respectful of their wants and needs.

Amazon and 'prime' disappointment

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Amazon Prime, initially conceived as a service that offered exclusive benefits such as fast delivery and access to a vast library of video content, created excitement among consumers with the promise of more value for their money. With an annual or monthly membership, users expected to enjoy benefits such as free one-day or even same-day shipping on millions of products, placing Amazon at the very top of online retailers with a very attractive offer.

However, things have changed in recent years. Amazon gradually rolled out changes that eroded the original promises of Prime membership. Users have begun to notice that free express shipping is no longer as prevalent as it once was. Additional charges for “fastest delivery” have often appeared, although this was once a standard option for Prime users. There have also been increased minimum order value restrictions for free shipping on certain products, which previously only applied to extremely heavy or large items.

Additionally, benefits such as exclusive access to special offers and discounts became less prominent, which meant that exclusive offers were seen as less attractive or were available on a limited number of products. Users also faced disappointment with Amazon's streaming platform, Prime Video, where the quality and scope of the offering often varied without this being reflected in the membership price reduction.

All of these changes have called into question the value of an Amazon Prime subscription. Users have begun to debate whether the subscription is still worth it, as some of the most attractive benefits have become less accessible or come with additional terms. This reduction in the value of the service led to dissatisfaction and in some cases even termination of membership, as consumers did not want to pay a premium for services they used to receive at no additional cost. This trend points to a wider problem in the industry, where companies are gradually reducing benefits while increasing costs, which can damage their reputation and customer loyalty in the long term.

Conclusion: and what can we do?!

In the modern era, where digital services permeate almost every aspect of our daily lives, the role of the consumer has become crucial. The changes we're seeing with big tech companies like Amazon, Uber, and Netflix, which are gradually reducing the value of their services while simultaneously increasing costs, point to the need for greater consumer awareness and action. It is not enough to passively accept the conditions they impose on us; instead, we need to be proactive, demand better services and support those providers who put ethics and transparency first.

Take Instagram for example, which has had an impact on user experience and privacy with its recent algorithm changes and the introduction of more ads. Like other giants, Instagram (under the umbrella of Facebook) puts profitability before user satisfaction, leading to frustration and reduced trust. This trend is not limited to services, but also extends to products such as smartphones and computers, where manufacturers limit repairs and upgrades, forcing users to buy new models more often.

Reversing this trend requires more than individual efforts; collective action is needed. This means educating ourselves about our rights as consumers, sharing information about company practices, and collectively choosing alternatives that respect our wants and needs. We also need to pressure lawmakers to introduce stricter regulations to protect consumers and encourage fair business practices.

In short, if we want digital services to evolve in a direction that respects consumers, we, the consumers, must be the ones to drive this change. With our choices, votes and money, we can shape the market that will force the tech giants to do more responsible and ethical business. The power of consumer voice and activism in the digital age should not be underestimated.

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