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At a point, market share will stabilise, development will tail off and it will increase its prices and margins accordingly and be able to recoup its initial losses with a minimal decline in drivership.
Or investors may decide that prices cannot ever be increased enough to recoup or stem losses, without losing market share, and the company would disappear overnight.
chez_jay-
Possibly. But if they're tapped into the global business (profits) you could imagine that there will always be more relaxed markets where Uber can keep all their costs to an absolute minimum so as to more or less guarantee a return for the more clued-up investors (as opposed to the muppet investors who get fleeced with a bad deal).
boristrump
Prices are surpressed because Uber wants to be able to corner a market share through price. At the moment the company as a whole is literally billions in the hole as far as operating costs are concerned.
At a point, market share will stabilise, development will tail off and it will increase its prices and margins accordingly and be able to recoup its initial losses with a minimal decline in drivership. Occasionally it will indulge in price surges because it knows that the revenues that it will generate at those times won't have an impact on it's core customer base but that is by no means enough to cover much of the losses.