Reference is the book you referred :
Step 1 : Let $$ f(x,y) :=\frac{x-y}{1-\overline{x} y } $$
From a routine computation we have $$ |f( f(x,y),f(x,z)) | = |f(y,z)
|$$
Since $$
|f(a,b)| = |f(f(c,a),f(c,b))| = \bigg| \frac{ f(c,a) -
f(c,b)}{1-\overline{f(c,a)} f(c,b)} \bigg| $$ we have a claim $$ \bigg| \frac{ f(c,a) -
f(c,b)}{1-\overline{f(c,a)} f(c,b)} \bigg|\leq | f(c,a) | +
|
f(c,b) |\ (1)$$
Step 2 : $$|x|,\ |y| < 1 \Rightarrow |f(x,y)| <1$$
Proof : It is followed from a direct computation.
Step 3 : That is if
$v:= f(c,a),\ w:= f(c,b) $ then we have
$$
|v-w|\leq |v-|v|^2 w| +|w-|w|^2v |\ (2) \Leftrightarrow (1)$$
If $v:=v_1+iv_2,\ w:=w_1+iw_2$ then $$ \sqrt{(v_1-w_1)^2 +
(v_2-w_2)^2} \leq \sqrt{(v_1-|v|^2w_1)^2 +
(v_2-|v|^2w_2)^2} $$ $$+\sqrt{ (w_1-|w|^2v_1)^2 +
(w_2-|w|^2v_2)^2 } \ (3)\Leftrightarrow (2) $$
Case 1 : $v_1w_1 \geq 0$ Then
$$ 0\leq |w|^4 v_1^2 + |v|^4 w_1^2- 2v_1w_1 (|v|^2+
|w|^2-1)\Leftrightarrow $$
$$0\leq (|w|^2 v_1 - |v|^2 w_1)^2 + 2v_1w_1 (1-|v|^2)(1- |w|^2)
$$
$$
\Rightarrow
(v_1-w_1)^2 \leq (v_1-|v|^2w_1)^2 +
(w_1-|w|^2v_1)^2
$$
Case 2 : $v_1=-nw_1,\ n>0,\ v_2w_2 \geq 0$ Then $$
(v_1-w_1)^2=(n+1)^2w_1^2, $$ $$ (v_1-|v|^2w_1)^2 +
(w_1-|w|^2v_1)^2 +2 |v_1-|v|^2w_1 || w_1-|w|^2v_1 | \geq $$ $$
(n+n^2w_1^2)^2w_1^2 +(1+nw_1^2)^2w_1^2 +
2(n+n^2w_1^2)(1+nw_1^2)w_1^2
$$
That is, we proved the following :
$$ (v_1-w_1)^2 \leq (v_1-|v|^2w_1)^2 + (w_1-|w|^2v_1)^2 + 2
|v_1-|v|^2w_1 || w_1-|w|^2v_1 | $$
Case 3 : $v_1=-nw_1,\ v_2=-mw_2,\ n,\ m >0$
Note that
$$
nw_1^2+ mw_2^2 \leq \sqrt{n^2w_1^4 + (n^2+m^2)w_1^2 w_2^2 +
m^2w_2^4} $$
If we replace $ v_1=-nw_1,\ v_2=-mw_2$ in (3), then we have (3) from direct
computation.
So we complete the proof.