Uber pretty clearly has two main innovations: (1) the efficiency of the app/gps combo vs traditional cab dispatch. This seems fairly easy to copy by incumbents

Uber pretty clearly has two main innovations: (1) the efficiency of the app/gps combo vs traditional cab dispatch. This seems fairly easy to copy by incumbents and new entrants and in fact being a private company operating your own network has shown some weaknesses (ghost cars injected into map to fool customers, drivers not given accurate pickup info to protect from competitors which delays pickup, etc.) (2) the quasi-legal setup of "we will pick you up and take you to somewhere else for money but we're not a taxi company" that allows them to disrupt the medallion ecosystem where it exists. This advantage only manifests in areas where supply has been heavily and artificially constrained and disappears once the medallion bubble has been burst.