There&#x27;s a lot of snarky answers, but some things off the top of my head why Uber can be cheaper:<p><pre><code>  * More efficient (less down-time driving around)
  * People use their own cars (no need to buy&#x2F;maintain taxis)
  * Less overhead (no need for managers, dispatchers, etc)
  * No taxi medallions
  * More popular, so more rides
  * Subsidized by VC money (Okay, kinda snarky, but legitimate)
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The last point about subsidization sounds bad, but their goal is (likely) to just get enough market share that they&#x27;ve already won by the time self-driving cars come out (and can cut costs significantly then).