What you forget is that cabs also have incentives not available to Uber, such as lower fleet costs and tax advantages in certain cities. If you compare transportation costs without Uber subsidies, cabs are very competitive in some markets.

> I would suspect that Uber's will still be lower than cabs'

What people pay for an Uber still varies a lot by city.

At home in Ohio, Uber is more expensive than taxis in several cases, for example, to/from the airport, and short trips from the city center to the bars (2-3 miles). Taxis are also generally cheaper here for longer trips (maybe 30+ miles).

Similarly taxis can still be cheaper (and are still ubiquitous) in NYC.