[tdaltonc]

The premise behind uber's valuation is that they could own the marketplace for transportation. But what if the market is not monopolizable? If users (drivers and riders) can costlessly participate in multiple transportation markets, then it's impossible to form a monopoly. Users will just frictionlessly move to the cheapest market. I operate in multiple of these markets (check all of the apps before committing to a ride) and I know that many drivers do too (lyft on this phone, uber on that phone, etc). So shouldn't this monopoly unravel to the point that all of the transportation markets aren't able to capture any value from the transaction?

[Zigurd]

Uber's valuation is also based on the perception that Uber can outgun the competition technologically and in global expansion. Uber might face more or less frictionless competition from regional rivals, like Lyft, but will have some durable advantages.

Google is a different kind of competitor.