Is Uber deemed to fail?
If you give great founders with vision a lot of runaway, they are going to take it.
Jason Calacanis, an early investor into Uber, explains that massive amount of private money enabled Uber to grow rapidly in the early days, ignoring some of the realities at the expense of getting to scale.
Once they IPO'ed, the company had to switch from focus on massive growth, to focus on profitability. It was a big shift, and it will take time to transition.
However, as long as they can differentiate, and people love their product, they will figure out how to adjust their margins to give public markets what they need.