[Guest98123]

I think Uber has a huge advantage. If you start a new transportation service in NYC, Uber can just flip a switch, undercut your NYC prices by $2 per ride, and make up the difference by raising prices $0.10 per ride in other cities without competition.

How do you compete with that? You'd be burning money to compete, and Uber would just wait it out until you're bankrupt.

If you launch a global competitor that gains traction, Uber would just lower prices worldwide. If they can sustain a billion dollar loss every quarter, then you're quickly going out of business, and once that happens, they'd raise prices again and return to be profitable.

[majani]

China was the ultimate test of your theory and Uber didn't pass