I think this is the desired outcome from Uber. There's no way they haven't been preparing for an outcome like this for years. Mid-pandemic where revenue is already in the shitter, they may as well take another hit in the hopes of forcing the CA legislature to legalize their business to protect desperately needed jobs.
Either that, or in the wake of this some other company finds a way to achieve this same result in compliance with the laws and captures the market. I think both outcomes would be acceptable.
It's not really that hard, you just have to increase prices a bit, which in turn shrinks the market, which in turn means you aren't a $100B company. Maybe more like a $1B company or so. Obviously this would be a disaster for Uber, but that doesn't mean it's not a viable business model.