Or competition appears in your most profitable locales and skims off the most profitable end of the market, like Juno in Manhattan, offering slightly higher pay

Or competition appears in your most profitable locales and skims off the most profitable end of the market, like Juno in Manhattan, offering slightly higher payouts to the top-rated Uber drivers, and a slightly better service to the top customers. And they don't have to try to make up the costs of overcoming legal hurdles and creating the market.