In some respects, this is similar to what started to happen in the retail sector many years ago.
The bigger suprmarket chains started to look at how to cut prices and deliver more; scale is key, but also making sure that the technology is used to its maximum capability to deliver efficiencies. However, they also found that they could "persuade" suppliers to do similar things; upscale production, cut costs, deliver more for less.
Those that did well, bought out the smaller players or the ones that couldn't / didn't keep up. Remember names like Fine Fare, International, David Greig, Gateway, Ford & Lock, Victor Value, et al. In most cases, it was simply a quick way to expand, to get more customers and sell more to squeeze the supplier.
To begin with, the winner is the consumer; they get a great deal at a good price funded by squeezed margins. However, there always comes a point where the cuts are too deep and businesses are not making a profit. You can survive for a while, but as a business model, running without making a profit is insane.
It will be interesting to see how far this develops.