I am curious, if the fares are subsidized, then how much Uber will earn? I can imagine that surge pricing makes them a lot of money, are they going to drive away surge pricing? What if it is 2am and uber asks for 400$ ( I am not American, so pardon my analogy) to go for a small distance?

Considering the rebellious attitude Uber has, I can imagine their city hall complaint as "this is how we will behave, else we will go out of your city like we did in Austin"