This whole thing reminds of Buffett, Charlie Munger and the textile mill machinery story. I need to find the exact link for it though. Here's what I can remember from top of my head:

They were offered more "efficient" machinery, which could manufacture more textiles than the old machines. "It will pay for itself" was the pitch. But they refused as more efficient machines meant they had to pass on the savings to the customers. With lower prices, machinery was not exactly going to pay for itself.

I guess that will be the case for Uber and Lyft too. Any efficiency with low enough barrier will mean no one is reaping profits rather passing it on to the customers and hence making less money.

Edit:

Found the link:

https://www.farnamstreetblog.com/a-lesson-on-worldly-wisdom/