[tarunm]

Amazon spent capital on building an efficient supply chain based on technology which is a huge entry barrier for any competitor. They did not use VC on exclusively providing any discounts. Uber, on the other hand, is using VC almost entirely on discounts hoping that users will stick around. Their product is essentially an app which has been replicated in every major economy with considerable success.

[jfoster]

Agreed, except that it seems quite likely that users stick around. Where else would they go? The options seem to be an Uber competitor or taxis. Is there anything that will motivate Uber customers toward those?

Uber's service is more than just an app. They have operations teams in every market they operate in to onboard drivers, deal with local issues, etc.

[ufo]

The main attractive of uber is the price. Many people won't think twice about jumping to a competitor if one shows up that is cheaper than Uber.