This paper examines the concept of data vulnerability pertinent to personal information disclosure in the context of online services. Data vulnerability signifies a detrimental effect on the well-being of customers and can lead to disengagement with online services. This paper explores the impact of data vulnerability in manifesting service failure as a co-creator of value and subsequent value co-destruction. The study also investigates the cogency to establish Transformative service research (TSR) as a long-term solution for data vulnerability and create well-being for the customers and the stakeholders for the furtherance of the ecosystem. This study conducted 24 in-depth interviews on grounded theory methodology. The findings include forming Transformative online service (TOS model) as a new paradigm contributing to TSR domain and the development of a solid foundation to converse value co-destruction through emergent themes of value re-creation and synergy in the direction of value co-creation.