Keep focus on self-driving through the next funding cycle (for the hype) then drop it like a hot potato. It is way too long term for Uber to be burning money on it, they have immediate short-term problems.

I'd probably try to rebrand as the new, legal Uber and start spending money on lobbying local politicians. The "taxi-app" market has almost no switching costs and so Uber has almost no pricing power. They'll need to fix this to ever run a profit. Effectively Uber exists because it broke the laws that created barriers to entry. If it wants to continue to exist it needs to erect new barriers that protect it and keep out competition.