But where are the profits? Uber is already subsidizing rides, while cabs and cab companies have to turn profits. Trying to build loyalty with points just increases Uber's costs, as they can't push that off onto drivers. Retaining customers and increasing ridership by increasing loss per trip is not a sustainable model.

Ride services are completely different from airlines, if only because the capital outlay is incomparable. You could run a ride sharing business and get two hundred drivers driving around New York by December for 250k. That won't even pay for a single flight crew for a year, much less a plane to put them in.