[hn_throwaway_99]

"Raising fares 7% without increasing the driver's cut" is a complete fantasy at actually should emphasize how unprofitable Uber is. In many other transportation industries, 7% is just about the total profit margin - if companies in these other industries could raise their revenue by "just" 7% they would double their income. They don't because they can't.

[encoderer]

I disagree. The average $15 fare becoming $16 will just absorb a lot of consumer surplus that Uber is leaving on the table for competitive advantage. Cabs are still generally more expensive.

[hn_throwaway_99]

And you don't see Lyft as seeing an opportunity to sell for $15?

[encoderer]

Actually I think the bigger threat would be lyft charging $16 and paying the drivers more. But outside of a few big American cities Uber dwarfs lyft so they would need to scale up before they could really threaten