At least from the perspective of a potential customer, I now view Y Combinator as a red flag for a service provider, for a variety of reasons.
The two big ones: YC companies try to "grow" too fast without any concern to the dynamics of how their market is supposed to work after they've achieved their targeted scale. The basic playbook seems to be: give stuff away for free until you kill the incumbents, then jack up prices to way more than what the incumbents used to charge while simultaneously reducing the services/products offered.
There's also the issue of companies basing their business models around regulatory arbitrage, ignoring the rules that incumbents (are forced to) live by and then using their size to try to get away with their past misbehavior.
The two big ones: YC companies try to "grow" too fast without any concern to the dynamics of how their market is supposed to work after they've achieved their targeted scale. The basic playbook seems to be: give stuff away for free until you kill the incumbents, then jack up prices to way more than what the incumbents used to charge while simultaneously reducing the services/products offered.
There's also the issue of companies basing their business models around regulatory arbitrage, ignoring the rules that incumbents (are forced to) live by and then using their size to try to get away with their past misbehavior.