Earlier quoted context omitted.
Uber definitely competes on price. Their fares are almost always the lowest of any competitor, especially compared to traditional cabs. That's essentially their only strategy other than allowing mobile hailing & payment (which is not particularly hard to replicate). The reason Uber is blowing through so much venture capital is because they are bleeding cash in all directions on fare subsidies.
Are you willing to let Uber spy permanently on you in order to save a few bucks? http://www.wired.co.uk/article/uber-track-location-data-upda...
Assuming you trust them.