No, that's the evolution of venture capitalism.
Step 1: groundbreaking service comes in that fills a market hole
Step 2: people flock to service
Step 3: service gets VC funding to continue operations, subsidising the users
Step 4: service gets "copied", competitors crop up, use VC funding to eke out their own marketshare while making things worse for everyone but themselves
Step 5: expansion plateaus as interest in service generalises (basically, everyone who could be interested, is already using it)
Step 6: VC funding depletes, company has to start making a profit - leading to price hikes, which is followed by other players in the market as that's how capitalism works
Step 7: price hikes not being enough, service tries to capitalise on their userbase (think restricting features to a higher paid tier, introducing new tiers that strip away features, introducing ads, etc.)
Step 8: market is saturated with plateaud services, user movement is minimal, and everybody hates it because it's expensive, and reintroduced the same problem the initial innovative service meant to fix.
