Ubiquity of Uber/Lyft is a phenomenon across the world, but not all the markets are as flexible on the price. I question the premise that the markets will respond mildly to a significant price increase in most places. The valley just has a high density of high earners who are willing to pay the sort of price Uber would have to set for competing successfully with drivers making decent pay.

And has done so by running its business at a loss, with waves of protests erupting across the world against their anti-labor policies. A quick google search will tell you all about it.

Do you believe that when Uber stops bleeding money, and pays an ultimately somewhat acceptable wage to its drives, it will still be able to compete at the new prices set by these changes?

I sure don't.