Not necessarily. The playbook of what tends to happen is first a bunch of players go bust in the race to the bottom, then the survivors are free to raise prices a bit when others realize there’s not much point in entering a race to the bottom. Those left then let quality slip as competition cools.
That’s exactly what happened with rideshare companies. It was an amazing new thing but subsidized in an unsustainable way, then a bunch of companies exited the space when it was an commoditized race to the bottom and those left let quality slip. Now when you order an Uber a car shows up that smells bad and has wheels about to fall off. The consumer experience was a lot better when Uber was a VC subsidized bonanza
