A bootstrapped Uber-like company can't survive the entry of a funded Uber-like company in that local market, as their expected initial promotional campaign and discounts will have you running at a loss for months which you can't afford unless you have substantial cash reserves.

This particular example (prolonged "dumping" of services far below cost in the business of taxi-like-services) is what we've seen in practice a bunch of times in many cities as there have been multiple 'waves' of richly funded new entrants trying to come in.

Taxi services are doing just fine, even if the are pressured by Uber. So there is that.

Taxi are allowed to pick people up who hail them on the street or at a subway stop etc. That’s a huge protected revenue source.

Also some ideas depend on network effects more than others. Make something that is useful even if nobody else is using it and you protect yourself from this