A lot of people are saying Uber can just raise prices. Sure, they can, but Uber's not like other businesses. If Uber raises prices, then fewer people take rides

A lot of people are saying Uber can just raise prices. Sure, they can, but Uber's not like other businesses. If Uber raises prices, then fewer people take rides. If fewer people take rides, then its harder for riders to make money. Even if an equilibrium is reached with fewer drivers and fewer riders at the same cost of labor, it's harder for Uber meet flexible demand and manage driver retention, and what not. It could create a feedback loop where higher prices require higher driver wages resembling economies of scale.