> when the choice is a $2 cab ride or a $4 luxury cab ride, a lot more people will pay the margin. But when the cab ride is a more realistic $25, and a luxury

> when the choice is a $2 cab ride or a $4 luxury cab ride, a lot more people will pay the margin. But when the cab ride is a more realistic $25, and a luxury cab ride $50, most people will go for the $25 option. See Uber Black vs Uber X.