No, the purpose of surge pricing is to get more drivers out on the road. That, in turn, is to increase profits, but I'm fairly certain you could argue that pretty much anything any company does is to "increase profits"
And there's no reason to expect that only the latter Uber has in mind.
You're correct in assuming that increased prices will reduce the number of drivers demanded. But you're wrong in assuming that the pool of available drivers remains static when prices increase.