[joshe]

Businesses where you burn capital on price wars are low margin businesses.

[treis]

(1) Low margin is probably OK given the enormous market Uber/Lyft will share.

(2) They won't actually have to burn capital. No one is going to get into a price war they obviously can't win.

[joshe]

1) We totally agree, ride hailing is a low margin business.

2) Yes! As long as Uber/Lyft act like low margin businesses no one will compete with them. This means they have no pricing power.