> as soon as the company raises prices to cover costs ... new entrants (and revived old entrants) would quickly come into the market Is it really that easy to

> as soon as the company raises prices to cover costs ... new entrants (and revived old entrants) would quickly come into the market Is it really that easy to create an Uber competitor once it's established a monopoly? If you're a driver, would you spend your time on an upstart with very few customers and similar prices? And if you're a passenger, would you use an upstart with few drivers? I'd have to have a significant financial incentive to do so (and that amount represents the excess profit Uber can charge). This is what Warren Buffett calls an "economic moat", caused by what Silicon Valley calls "network effects". Those effect looks pretty powerful in Uber's case. I think a competitor would have to come in with heavy subsidies (heavier than what Uber offers now) once Uber is established. Why do you think it will be cheaper to take monopoly power from Uber once they are established than it is for Uber now to establish monopoly power? I think it goes the other way. Of course, Uber could be thrown off by regulation or lawsuits or a technological shift. Without one of those, I would pretty confidently bet on Uber.