Except there is a network effect. You will have to lower the cost for both; passengers and drivers for them to switch. Most of passengers I know, use one app, e

Except there is a network effect. You will have to lower the cost for both; passengers and drivers for them to switch. Most of passengers I know, use one app, either Uber or Lyft. I don't know which one is cheaper but no one seems to compare prices even if they had both apps on their phone. The way I see is that once Uber is a monopoly, it will start using advertisement model to subsidize rides. Should be easy enough, after requesting a ride at full cost, you can watch 5 minutes of videos until your ride gets there to get 10% discount. Or they can ask drivers to put tablets playing ads in their cars. They have history of places you visit, they can probably show highly targeted ads. "Going to a bar in downtown, checkout this other bar on the same street."