> In practice drivers do set their prices by only driving when the price is what they're willing to pay
So your argument is that drivers really set the price...
> (e.g. only during surge pricing)
And your example of drivers setting the price is...algorithms running at Uber and Lyft that set prices. Algorithms which Uber and Lyft would surely regard as proprietary trade secrets and resist disclosing to drivers, passengers, or government regulators.
How is that drivers setting prices, exactly? If an Uber driver wants to give me a ride to the airport, the Uber app decides that it costs $X. If that Uber driver believes that Uber's surge pricing model is inaccurate and thinks the real price should be $Y, there is no facility for me and the driver to negotiate on a different price.