Unfortunately for them, this is a thing: https://en.wikipedia.org/wiki/Price_elasticity_of_demand
If it's more expensive, many previous Uber customers will take a 'real' cab, public transport, or simply not travel at all.
If it's more expensive, many previous Uber customers will take a 'real' cab, public transport, or simply not travel at all.
If Uber is 10% away from breakeven, it can probably close that gap in stages without ruinous consequences from demand elasticity.
I now own two cars (between me and my wife), but there was a period last year where I was living relatively close to my office and using uber relatively frequently instead of owning a second car. I did the math and it boiled down to Uber/Lyft being cheaper than a second car, even if I used it relatively frequently. Five or six years ago this wouldn't have even been an option, and I would have just bought a car, since traditional cabs just aren't as convenient.
My point is that many people use uber in their day to day life, such that they pay close attention to pricing. Traditional cabs are something that I used almost exclusively on vacation (and still do in places with uber), so I am much less cost conscious on those.