&gt;&gt; The only reason Uber like companies can give you those rides for a cheap price is not because there is some magic, or innovation happening there. Its because they are burning billions of that VC money to subsidize your travel, transportation is a very capital intensive business.<p>This is certainly <i>NOT</i> the case in NYC where I live.  Artificial scarcity of taxis was created by the city government by limiting the number of medallions to 13,000 and as a result, taxi medallions had cost $1.2 million.  Much of taxi fare went to paying for those $1.2 million medallions.  Uber has offered lower fees, offers greener rides and lower still fees through Uber pool where passengers share an Uber than the taxi industry with a rating system so that you know if you are getting a good driver.  Now those $1.2 million medallions are worth about $700K and many taxis are now not in use and the taxi companies are declaring bankruptcy.<p>It is possible that if the government had not created the artificial scarcity by limiting medallions Uber may not have gained traction.