[tmoertel]

> The Uber business model is: Undercut competition. Use borrowed money to sell rides under cost. Wait for all competitors to die. Jack up prices.

The interesting thing is that there is more than one startup using this model. The competition isn't the other startup; it's the other startup's investors.

I wonder how long those investors will keep on pumping money into the scheme, hoping their guy will be the last standing. Or will they ride the sunk cost fallacy all the way down?