Price is definitely the dominant factor for Uber's Growth.
They achieved 2 things, the appearance of being cheaper(by putting a lower price, but making "surge pricing" look like a special thing), and eliminated price sensitivity from the customer.
In a cab you are constantly reminded how much its costing, so you suffer the price every second. In Uber/Lyft you dont even know until you left the car, so you are willing to pay more. I think this is an unfair advantage to UBER, in detriment of the consumer.
They achieved 2 things, the appearance of being cheaper(by putting a lower price, but making "surge pricing" look like a special thing), and eliminated price sensitivity from the customer.
In a cab you are constantly reminded how much its costing, so you suffer the price every second. In Uber/Lyft you dont even know until you left the car, so you are willing to pay more. I think this is an unfair advantage to UBER, in detriment of the consumer.