> It doesn't have to be competitive on price. I'd use it at twice, or even three times the price of a cab, simply because the service delivers on what it promis

> It doesn't have to be competitive on price. I'd use it at twice, or even three times the price of a cab, simply because the service delivers on what it promises, without unnecessary fluff. That is indeed how much Uber cost when it first came out. Particularly because they sent out nicer luxury cars and had to hire limo drivers. Uber used to be called UberCab, but the medallion cartel didn't let new entries in so easily and forced the change from UberCab -> Uber, and also made it so they had to use luxury limo drivers. Still, users chose and taxis died, rightly so. The unit economics are there that whatever Taxis charged Uber should be able to charge the same or less. If anything Uber et al are removing overheads not adding to them. The only way taxis would be cheaper would be if they were dodging taxes with their "no credit cards" policies.