[Someone]

I’m sure they will try to hide that by offering subscriptions, loyalty cards, better chairs, larger cars, larger monitors, Netflix, faster rides, etc, but the competition will go wherever the demand is and offer that $5 ride for $4.50.

I’m not sure how well they will be able to diversify their product while keeping the economies of scale. If 10% of your customers is willing to pay for more leg space, can you get by with 10% of your fleet being larger cars, or does that affect the waiting times of that 10% too much, and do you need to make most of your cars larger?

Also, if you pay $1 extra per trip on your commute, that’s a nice smartphone each year.

[sitepodmatt]

You would travel in reduced comfort for a year, however small the difference, to get the latest samsung/iphone?

[Someone]

I didn’t say that I would, nor that it would be “however small the difference”; I claim some people would. I also think that, if Uber and Lyft manage to capture the lower-income market, many of their customers will.

Also one man’s “reduced comfort” is another man’s “less luxury”. People make those choices all the times, e.g. when buying cars, train tickets, housing, or food.

[kelnos]

Why not?

Or, perhaps you have a small frame and the difference in leg room wouldn't impact you at all.