Earlier quoted context omitted.
"Their business model has no barrier to entry." Critical mass of drivers, particularly within a specific market area - and brand - are definitely barriers to entry. There are network externalities for sure. If you go to city ABC and 'everyone is on Uber' - as a consumer, you'll probably just use Uber. Drivers? Well, they'll just sign up for Uber if there's little else. A 'new market entrant' will have a 'chicken and…
I've got both Uber and Lyft on my phone, which I guess could be analogous to having two hot dog stands on the same block. Drivers can switch between the two just as easily. You're right though, they do have a well-established brand, and they have spent a lot of effort in getting around all sorts of legal problems. I wonder, though, if the legal things that Uber has paved the way on would ever make it easier for some…
There are tons of Uber-like companies, and you've never heard of them largely for this reason.