But will people continue to use Uber when the price goes up to market levels. Anecdotally, when Uber entered the market where I live they offered steep discounts and everybody I knew started to use them. Today they cost basically the same as most taxis and I don't know anybody who still primarily uses Uber.

Sounds like Groupon all over again.

>It's introducing people to the service and acquiring market. Better prices come later.

You say this as if 75% of the reason people take Uber isn't price, and that one day Uber will simply be able to jack up all their prices and make money. Demand doesn't work that way.