There are a variety of projects where Rails would be a perfect fit and an equal number of cases where a different technology might work better. But instead of giving an 'it depends' answer, we will cut to the chase.
RoR is an ideal solution for building a Minimum Viable Product (MVP) because of its readable structure and relatively simple syntax. This is why it has become popular among startups trying to carve out their market niche, as well as established companies looking to extend their product offerings.
But let's dive into the details.
Its philosophy of 'convention over configuration,' vast amounts of predefined configurations, and an extensive ecosystem reduce the number of decisions developers need to make. This speeds up the development process and allows them to operate within limited budgets and with reduced risk. This approach is safe, in terms of business, and fosters an R&D culture within organizations by allowing managers to quickly test their ideas in practice and correct assumptions if needed.
RoR includes a built-in testing framework, enabling developers to write tests alongside their code, which helps in maintaining a robust PoC with fewer bugs. And, if the general ideas prove to be solid, RoR is easy to scale up. The community provides a vast library of gems, which are reusable code packages that can speed up development and add functionality without the need to build everything from scratch. With RoR's support for RESTful architecture, it is easy to build APIs and services that can interact with other applications or services.
It is worth noting that Ruby on Rails (RoR) has proved itself as a good starting point for e-commerce platforms and social media apps handling multiple transactions, high traffic, and complex data operations simultaneously, even though their workloads are not steady. RoR often serves as a kickstarter, and later, when the time is right from a business point of view, companies decide to extend their tech stack and go beyond RoR by adding other technologies.
RoR doesn't limit the business; it is a technology capable of growing with it thanks to its flexibility on one hand, and its comprehensive library, streamlined codebase, and community support on the other.