STRUCK BY: The Lifestyle Subsidy Comes for Gen Z


Remember the early days of Uber? Not only was Uber better than a taxi, it was cheaper too. But every time we Ubered, or DoorDashed, or used another lifestyle app, we failed to realize that the prices were so low because those companies lost money every time we did so. They subsidized their services to hook us - which they did - and promptly raised prices.

I’m not just randomly reminiscing about $10 Ubers. Two months of access to the most advanced models of ChatGPT - usually $40 - is now free to college students. Anthropic, xAI, and Google have also offered students free or significantly discounted versions of their paid products.

The whole thing hearkens back to that glorious Millennial Lifestyle Subsidy - an unprofitable company, flush with cash, deeply discounts its services to win users. It’s safe to assume that now, just as it was then, the investors who had for so long allowed these start-ups to offer services at artificially deflated prices will eventually want to see returns. Prices for everyone will go up - enjoy the free versions while they last.

Emily Lerner, skillstruck studio

⚡️Leadership Coach + Professional Truth Teller 👩🏻‍💻 Recovering tech exec 🔥 People Strategist 📍Silicon Valley skillstruckstudio.com

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