Not before destroying any competition with cripplingly low rates. That's the problem: I can't hail a goddamn taxi anymore, despite it being cheaper by any back of the envelope calculation for society as a whole.
Can you explain this? Not challenging, just curious.
In all seriousness, Uber drives down price to a point that no one can really figure out if being an uber driver is profitable. Uber makes money, but none of that proffit is spent in the local economy. Capitalism doesn't work at that scale... look at the loss they can endure, compare that to a local cab firm, or even somewhere like NY.
How is it 'cheaper' to manufacture extra yellow cars and have them drive around aimlessly searching the streets for fares vs. hitching a ride with my neighbour who drives for Uber part-time with the personal car he'd have bought anyways?
That's not how Taxis work in my neck of the woods.
I call a company, get a cab at the time I want it.
Or I use their app or website, share my location, and get a cab arriving at the time I want it to.
And yes, they still pay the driving a living wage, take care of the insurance and don't treat me like crap unlike Uber.