Price is not the only factor for me as a consumer. The other is availability, or time to wait for pick-up. That is determined by how many drivers are around. Si

Price is not the only factor for me as a consumer. The other is availability, or time to wait for pick-up. That is determined by how many drivers are around. Similarly, drivers like to have their next ride soon after their current one ends. Thus, you have economies of scale for multiple reasons (big upfront investments for app and marketing, network effects). As such, there are high barriers to entry.