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Q: why does Reddit exist and who is its target audience? Alternative to all of the other social media sites and forums or what?
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I don't think they have that much of a market share. From what I can tell there are a lot of website builders, most tend to lock in their customers to the particular system/template. Major sites probably are custom made or from a commercial piece of software you can install on your own server.
But the analogy was just like you use one of those website builders to quickly put up your website according to the limitations of the system, Reddit would be a "forum builder" for those who don't have the ability to install their own 3rd party forum software, but rather setup a subreddit within the system. Sure there are other sites where you can start your own forum for free but the difference here would be those 400 million (I believe) users, called reditors who can have instant access to your subreddit instead of building the community from scratch. For similar reasons many 3rd party sites nowadays let you access their content using your Facebook, Google or Twitter login so they don't have to build their own user database as well as making it a one click solution to access their services.