Scale-able business economics hold that if $unit_profit > 0, growth is good. It sounds like $unit_profit is negative―at least in some markets. Which would be a

Scale-able business economics hold that if $unit_profit > 0, growth is good. It sounds like $unit_profit is negative―at least in some markets. Which would be a concern for long-term growth a profitability: the old "we lose money on every sale, but make it up in volume" joke. $unit_profit = $unit_price - $unit_cost In Uber's case, the interesting question is market flexibility on price. Or, another way, can Uber increase prices while maintaining market share, and if so, by how much? In personal experience, in my market, I believe there's headroom. I never step out of an Uber thinking, "Wow, that was too expensive." (Surges notwithstanding.) Nothing will make me go back to taxis. So the alternative is Lyft or nothing at all. And I think there's room to grow.