Big tech is built on predatory pricing
What Uber is doing here should absolutely not be allowed.  Whenever you go to a city where Uber is in it&#x27;s first year of operations the prices are insanely low.  This also happens when Uber launches a new product like Pool.  This enables them to crowd out any competition and then raise prices once they&#x27;ve got control of the market.<p>I have a friend in SF who takes Uber to work every day. It&#x27;s about 3.5 miles.  I assumed he was dropping boatloads of money but he told me it&#x27;s $2.50 each way!  The IRS estimates vehicles costs alone at about $0.55 a mile and that&#x27;s not including actual pay to the driver and Ubers cut.  Offering a service at this price is not only unfair to for-profit competitors but messes with public transport as well.  It&#x27;s using VC money to crowd out the market.<p>Unlike with cloud services (the other example) it&#x27;s much harder for competition to Uber to reappear once it&#x27;s disappeared.  There&#x27;s a fixed supply of willing drivers and big network effects at play.