Most businesses require sunk costs or debts, and it's also often what is required for new ideas take place in an established market. Whether they burn VC money or the bank's money to gain a foothold, is immaterial.

Uber did a great thing here and made a product that people like more, for less money. More drivers, way more global availability, more customers, and better cars, all while being cheaper. That is a quintessential success story.

If people liked taxis more, they'd use them. But taxis are still shit and the only reason we use them is because of the taxi cartel bullying weak city governments into restricting Ubers.