One of Uber's key advantages in Europe and the US is that fares were significantly cheaper and inventory is quite competitive than what the taxi companies got a

One of Uber's key advantages in Europe and the US is that fares were significantly cheaper and inventory is quite competitive than what the taxi companies got away with through regulatory capture (medallions and like). In developing markets like India, the taxi/auto rickshaw premium is actually not much. I estimate that taking an auto rickshaw for my morning commute is only 40℅ or so more expensive than driving on fuel costs alone and when you factor in interest on car loan, insurance, maintenance etc, it would probably be close to cost neutral. Uber and the local competition Ola are currently premium propositions to this. Local taxis I believe are competitive or slightly cheaper than Uber/Ola. Sure I happily pay a premium for the comfort of pickup in an air conditioned car etc and there will always be top 2-3℅ who will pay a premium. But being premium priced to key competition which has much higher inventory on the road means you can't really go after a mass market. In taking a mass market in any industry, convenience has almost never trumped price and availability. Everyone else I know in India who takes these cabs are also in the 2-3℅. Uber and Lyft have had all three in US. But price is a clear disadvantage in India and availability vs. alternatives is currently not an advantage. I'm not very clear what the scenario was in China but I'd not be surprised if it was similar. This lack of significant pricing and inventory advantage unlike US/Europe is I'm not sure being taken into account when projecting growth prospects and valuations.