[wickerman]

I think this also happens because traditionally, people become loyal to a brand because they gain something intangible from it. Reducing prices is not a way to ensure loyalty - as soon as they find a better deal customers will bail, as you exemplified. What does Uber do so well that you'd prefer it over a cheaper Lyft? Nothing. There may be virtually no difference in quality of service (sorry I have never used Uber or Lyft).

I remember when I was in college doing an enterpreneurship class we were constantly added what was the value to our products - what does your product do so well that people would flock to you instead of the competition? Being cheaper was not an answer my professors allowed.