While you got the effects correct, you got the process wrong and that’s important.
The way it works is a new company with a new and notably cost-effective way of doing things comes along and is unsurprisingly wildly successful.
The business model isn’t based on cost effectiveness. Most of these companies work at a loss for a long time, providing artificially low prices in order to gain market share and push existing players out. This is isn’t new. It’s called dumping. Irs just been a bit obscured by buzzwords like “new technology” and “disruption.”
And then, inevitably, that leads to them hiring a whole raft of executive parasites who all have to be paid obscene salaries for doing nothing of any real value, which means the company needs to raise prices and cut back on services in order to generate more profit to pay those salaries.
These executives aren’t hired to do nothing and collect high salaries. Their salaries aren’t what drives the price increases. The major shareholders who spent their money to sustain the company so far want to get return on that money. They install executives with this one goal - maximize profit - so they can get this return. This is what drives the hiring of sociopaths who drive prices up in order to increase profits at all costs. This is what drives hiring such people in all public corporations. You got the effects right but the reasons aren’t to do with shit execs and their salaries. It’s all to do with major shareholders search for growing profits. Everything else follows from there. This is important to understand in order to point the finger in the right direction. Misdirecting people’s substantiated anger with the system has been a perennial tool used to maintain profit maximization for as long as possible.