As a frequent Uber user in Chicago, I can attest to the fact that Uber often has no available rides for me when I need one. Just this past weekend at a rather busy intersection in Chicago, after requesting both an UberX and regular Uber taxi multiple times, I kept getting texts from Uber saying "we can't find an Uber for you at this time. Sorry for the inconvenience. Please try again soon!"
So the article's suggestion that "customers opening up the app and seeing no rides on the map" would be an existential threat to Uber is currently being proven wrong by Uber's success. That happens all the time and Uber is still doing alright.
While in Chicago over the holiday I tried out an app called Hailo to get yellow cabs on 3 separate occasions when none were to be found. I both enjoyed and recommend the app (with which I've no affiliation).
Not sure if you'd get the same response as uber taxi. Some of the hailo drivers also had the uber app running somewhere on their dash and some did not.
they are trying hard to avoid that by surge pricing. Imagine the frequency of such unavailability in case of flat pricing. I am sure that would be an existential threat.
So the article's suggestion that "customers opening up the app and seeing no rides on the map" would be an existential threat to Uber is currently being proven wrong by Uber's success. That happens all the time and Uber is still doing alright.