Er, either prices float to their natural level and there's no problem (i.e. Uber's profits are reasonable), or a competitor comes along.

Come on, keep some perspective. Uber is a taxi app. We're not talking about a Manhatten Project of software here. Duplicating the Uber experience is easy. 99% of the effort they're putting in there is the fights with all the governments, regulators, taxi unions etc.

Facebook and Twitter are in competition. And I think you underestimate the complexity of a project like Facebook. It started small, but back then people's expectations were much lower.

If Facebook started charging for its services or otherwise pissing off its users in big and obvious ways, I guarantee there'd be a serious competitor on the streets within months.

> And how those new apps get traction?

In a world where Uber is charging monopoly rents, they compete on either price or features.

Monopolies work when there's a barrier to entry beyond name recognition.

The app changes.

That's what is so great about the fluidity of Uber, without medallions and regulation and such.

If Uber starts to increase prices because they have a monopoly, a lone person can build an app that's cheaper.

In theory, yes, but you need to convince all the drivers and customers to install and use that app.

A lone person can create a new twitter and facebook too, it doesn't mean anyone is using it. I'm sure there are lone builders popping up every day. Is anyone using it, is there competition? - no.

It's very easy to convince riders if it's cheaper.

It's very easy to convince drivers if you give them a bigger cut.

If neither is possible, then Uber has already optimized the market, and there is nothing to complain about.

Why not? In Austin after the exit of Uber and Lyft there are still multiple ride sharing options.

If uber gets a monopoly and is charging too much, another company like Google, Apple, or whoever will start offering ride sharing, to get a slice of the pie.