I'd say that, while this almost sounds like a reasonable argument to put forward, it isn't probably going to work that way. Case in point: Gett in NYC. They ar

I'd say that, while this almost sounds like a reasonable argument to put forward, it isn't probably going to work that way. Case in point: Gett in NYC. They are running a $10 flat fare anywhere in Manhattan, and promising drivers double pay for three months already. That should undercut incumbents as well as cause drivers to flee, right? Why is Uber and Lyft totally winning NYC while Gett is not even operating at 1/10th the scale? I think it's got to do with liquidity and reliability. Even if the driver has 10 apps running, the probability that the driver gets the first/most ping from the app with the best client liquidity is extremely high. As long as he's constantly engaged, there is no need for him to open another app. On the flip side, when you're small, your supply runs out quick. If clients opening the app constantly see that, they'll eventually not open your app and go to one with the most supply liquidity. There are strong network advantages in this game. Your paper mostly discounts that.