This reminds me of Schlitz beer and its downfall [0]. Schlitz went from battling Budweiser for domestic supremacy to a case study in how to ruin your brand by repeatedly cheapening your product coupled with a belief that your customers are stupid.

Uber has been like Teflon so far, and Lyft is no Budweiser, but do I wonder if there's a tipping point.

[0] http://www.philcooke.com/the-schlitz-mistake-and-what-beer-c...