If you're confident that you can call on so much expertise that the quality of their execution hardly matters, go for it - but it's traditional to wait a bit to see if that potential competitor stumbles or misses out on a market.
I'd also be wary if there's any network effect that could favor them (unless you've got bags of money.) Also factor in the chances that a really large competitor will also decide to be competition if the sauce isn't that special but the service is very useful and complements what the big guys are already doing - although this could work in your favor if you're cool being an acqui-hire.
As for ethics, everyone understands it's a competitive market (at the bottom); but bystanders might wonder about your judgement for a while: "me-too" companies often fail, since those who lack the acumen to find their own idea often have little else in their quiver, and so fail to add the innovative improvements that are needed along the way in order to create a truly viable product.
I'd also be wary if there's any network effect that could favor them (unless you've got bags of money.) Also factor in the chances that a really large competitor will also decide to be competition if the sauce isn't that special but the service is very useful and complements what the big guys are already doing - although this could work in your favor if you're cool being an acqui-hire.
As for ethics, everyone understands it's a competitive market (at the bottom); but bystanders might wonder about your judgement for a while: "me-too" companies often fail, since those who lack the acumen to find their own idea often have little else in their quiver, and so fail to add the innovative improvements that are needed along the way in order to create a truly viable product.