Enshittification

Definition

Enshittification is a pattern in which two-sided online platforms and services decline in quality over time. Initially, platforms create high-quality offerings to attract users, then degrade those offerings to better serve business customers, and finally degrade services to both users and business customers to maximize profits for shareholders.

Explain Like I'm 5

Imagine you find a new playground that's amazing with the best slides and swings. Everyone wants to play there! After a while, the playground owners start charging stores to sell ice cream there. Then, both you and the ice cream sellers get less and less while the playground owners take more and more, until the playground isn't fun anymore.

Visualization

(Three-stage diagram showing: 1) Happy users on a quality platform, 2) Platform prioritizing business customers over users, 3) Platform extracting maximum value from both users and businesses)

ChatGPT struggling to knock this one out. :)

Enshittification.png

Here's the final output:

Enshittification-1.png

Digging Deeper

Coined by writer Cory Doctorow in 2022, enshittification describes a three-phase process:

  1. User Acquisition: Platforms offer excellent products/services to attract a large user base
  2. Supplier Lock-in: Platforms leverage their user base to attract business customers/suppliers
  3. Value Extraction: Once both users and suppliers are dependent on the platform, it degrades quality while extracting maximum profit for shareholders

This process is enabled by high switching costs and the platform's position as both a monopoly (to suppliers) and monopsony (to users). To counter enshittification, Doctorow advocates for:

Applications

Learn More