[TheTrotters]

But that strategy is probably impossible in a market where the cost to entry is fairly low.

Suppose Uber drives out literally all cab companies out of the market in some city and rises prices to absurdly high levels. Creating a brand new cab company isn’t that hard. Lease cars, create a decent app, advertise a little and you’re good to go.

[hakfoo]

I think they were hoping that their runway extends to self-driving.

Then a well-capitalized firm could suddenly leverage their scale. Order and maintain a fleet of 200,000 driverless cars, and you can get costs lower than an individual driver with his single vehicle and inefficient fleet management tools.