Actually, it's more like the pursuit of large profits (and VC exits) through scaling ruins everything.
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What, have a profitable, efficient business with happy customers and workers? Well, we NEED to see growth, so better find a way to cut the operating costs - no matter how much worse it makes the product, how unhappy the workers are, etc. Better try to capture more of the market even if it makes 0 sense in context and will end up being a massive waste of resources.
It may run the business into the ground, but as long as there's a quarter of growth they can't see anything else.