Uber's business strategy in New York is (or at least should be) different from Uber pretty much anywhere else, because the New York market for taxis/liveries is so different (which in turn stems from New York transportation in general being unique).
I've asked every Uber driver I've had (in both NYC and SF) a few questions, both about themselves and their passengers, and every single confirmed my hypothesis that Uber in SF is seen much more as a replacement/alternative to the regular taxi cabs, whereas Uber in NYC is more of a luxury service - similar to a limousine, though to a lesser extent.
Outside the tech community, people here (NYC) don't seem to view Uber as competing with the medallion cabs at all, which is why their decision to sign yellow cabs (illegally) made no sense. One driver told me that he had just finished dropping of a passenger who only wanted to drive three blocks, just so that he could show up at the club in a black town car instead of a yellow cab(!).
That happens, but is an extreme minority case (and against the law). The reality is that Uber's markup means that even if get turned away by a yellow cab one out of every five times, it's still worth trying.
So does Uber. Restricted supply, and price fixing don't tend to create as many jobs. They are higher paid jobs, or would be if the drivers themselves owned the permits.
> Universal service
I've never been to New York, but I've never been on a Uber thread without hearing some New Yorker claim that taxis won't offer universal service (mostly refusing fares which take them out of Manhattan), but Uber does.
> My advice to Uber? Slow down.
Nope. They should keep their speed up, and hope they survive the political game of chicken. It's like Air-bnb - their best chance is to get the public on side, so the politicians won't screw them. It's not the right way to do things. It's dodgy. It might be illegal, and probably should be. But they aren't in a market where "should" wins.