> So, you are saying as a SaaS platform Uber's ride pricing will not affect their profitability? No. I'm saying other factors affect their profitability, and t

> So, you are saying as a SaaS platform Uber's ride pricing will not affect their profitability? No. I'm saying other factors affect their profitability, and that it's very difficult to believe that a company that weren't spending dramatically in other areas couldn't be profitable by just running the SaaS platform for a 25% cut. The rest of your post suggests a misunderstanding of how markets work. If they're getting drivers voluntarily choosing to work for them for the rates they're paying (including in competitive markets), that rate can't be too far from the market rate. So the only way the prices could be subsidized is if the rest of the cost of the ride can't be done in the ~25% they're charging... but of course it can. That's a huge cut for administrative costs, accepting payments, and running a SaaS app. For someone to compete with Uber, they'll have to offer better service (which will be tough) or better prices (which will be lower). There's no reason to believe some bubble is going to pop and Uber prices will increase dramatically overnight. People have been saying this for years but I don't see how it's any more than wishful thinking.