Here’s the rub in the real world: Uber isn’t just satisfying the two simultaneous demand curves of customer and driver needs, but also competitive business needs. Their desire to crush the incumbent taxi industry and to compete with rivals like Lyft also affects their pricing. And under the rules of the venture-backed startup game, in order to satisfy the enormous prospective valuation placed on them by their investors, they must grow at a rate that will allow them to utterly dominate the new industry that they have created.
