Ride sharing is computationally NP-hard (assuming vehicle capacity larger than 2), the whole fleet management itself is NP-hard and depends highly on the realtime routing capabilities and prediction.
To make a combinatorial optimization algorithm capable of incorporating ride-sharing constraints and realtime data is a serious feat which maybe they jumped in too early to solve (given that no current research published tries anything similar). For really groundbreaking work to happen one needs quality engineers and researchers, and realistically, who would want to work in a company that is openly criticized for having terrible work culture?
The only way they can lower the prices and then find the sweetspot prices after monopoly is by having superior machine learning and combinatorial optimization solution.
I suspect this is what the GP is getting at: reaching the levels of optimization on this problem which are required to launch the service is comparatively easy. Going from there to optimality is extremely hard, but may not be necessary from a business or end user point of view.
Yes, service can obviously work with subpar algorithms but to really succeed at pricing it as cheaply as possible it requires practically an ability to successfully predict the whole day and then optimizing on the NP-hard problem of that whole day. Maybe sampling a million day variants while routing to make a single decision (which driver should pickup the next request).
Of course brute force greedy algorithms work but they can be, on a hundred vehicle scale, 30% away from the optimum cost.
I've been downvoted to oblivion so I cannot longer keep participating in this discussion (HN will shadowban me).
Part 1: http://www.nakedcapitalism.com/2016/11/can-uber-ever-deliver...
Part 2: http://www.nakedcapitalism.com/2016/12/can-uber-ever-deliver...
Part 3: http://www.nakedcapitalism.com/2016/12/can-uber-ever-deliver...
Part 4: http://www.nakedcapitalism.com/2016/12/can-uber-ever-deliver...
Part 5: http://www.nakedcapitalism.com/2016/12/can-uber-ever-deliver...
Part 6: http://www.nakedcapitalism.com/2017/01/can-uber-ever-deliver...
Part 7: http://www.nakedcapitalism.com/2017/01/can-uber-ever-deliver...