If you assume rideshare demand remains consistent and that riders just switch over to Lyft (which doesn't seem entirely unreasonable), then presumably the overall supply/demand curve remains fairly consistent. Obviously some fuzzing around the edges will remain, but otherwise the broader conclusion holds?

>supply and demand dictates there won’t be enough demand and they’ll get lower wages.

Reductive.

Your model assumes demand for Lyft remains constant while supply increases. This ignores the fact that supply is dropping at Uber, which causes a price increase, which causes demand to shift else where...to Lyft which increases demand.

Not necessarily. I use both apps. I'm sure a lot of other people do too. More people would use Lyft if it's the cheaper option (and not surging like Uber would be in this scenario).

True, unless enough Uber customers jump ship to Lyft to support Lyft's demand.