[davidf18]

>> I disagree completely. Uber's inception/success was partly because of existing taxi services' "barriers to entry". Medallions were worth about $1 million each when Uber started in NYC (http://bloom.bg/2aCEeQA). That's a textbook case of an economic rent.

I live in NYC and if you look at my other posts to this article, you'll see I made the point that before Uber/Lyft the medallions went for $1.2 million.

Still, Uber/Lyft are way, way too expensive compared with other cities in USA and this is from the "legacy pricing" from the pre-Uber/Lyft days. Also, the "surge" pricing is really annoying and makes it Uber/Lyft far more expensive than taxis (they have the Arro app). I've had surge pricing on a Saturday morning! Hardly rush hour when it is raining! (I didn't use it).

>> Besides Uber's barriers to entry are it's scale (low prices and reliable service)

Uber does not have low prices in NYC. In other cities I've used it they are lower, eps. Uber-pool when it is available. Don't take my word for it. Check the Uber prices of NYC vs. Chicago or other large cities. NYC is about twice as expensive.

[mahyarm]

Most of the uber price goes to the driver. So higher prices means more money for the driver. Since NYC is a more expensive place to live, and people have more money, you have to charge higher prices to get enough drivers to drive.

Make NYC as cheap as new mexico to live in, and you will see new mexico prices.

[davidf18]

Because of the limit on taxi medallions, the market value of a medallion was as high as $1.2 million. When drivers lease the medallion it can cost $125 per 12 hour shift or about $85,000 per year -- an amount Uber drivers don't have to pay and thus should result in much lower fares. Other US cities that are still expensive gave much lower fares.

Also there are many elderly on a fixed income that can't drive or negotiate mass transit easier.