> How much will their market share fall when they do this though?
who knows? But if their competitor is going to subsidize, but uber doesn't then they'd lose most of their marketshare. But the same story would be true for their competitors.
So the subsidy would drop slowly for every player in this market, until they reach an equilibrium, where the final margins for every player is as thin as possible but still pay the bills.
How much will their market share fall when they do this though? And will uber be able to survive the corresponding reduction in revenue?