I do not disagree with your analysis. UberX’s cheaper pricing certainly enabled the average consumer to try their offering and then experience a 10x better product.

That said, competing on price can be very dangerous *unless* you’ve truly won the market. In my experience, competing on price is often a race to the bottom — and at what expense?

Wal-Mart is cheaper than Target, but I’d go to Target *every time* because the experience is better, the caliber of employee is better, the customer service is better, et al.

If you’re competing on price, someone can always find a way to be cheaper than you. The race to the bottom doesn’t work if you end up in 2nd place.

Every great brand is known for something other than how cheap they are.