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Some of the ride cost is VC subsidy. Some of the ride expense is Uber corporate (thousands of programmers, pay for officers, managers, building rent, etc).

Do we know which is greater? Maybe there is room for an app with low overhead to compete.

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I'm supportive of the co-op idea, but my bet would be that the drivers don't matter nearly as much as users. So unless it can compete on a UX level with the convenience and branding of the VC-backed options it's not going to succeed.

I agree, although the flipside is cheaper rides that can be marketed as going to local drivers.

With any app, your driver is going to be local enough to be picking you up.

A larger cut is retained by a distant middleman.

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