This is an attempt to push Lyft out of CA by raising the cost side of the equation but that cost will eventually have to be passed to riders, which will dramatically drop demand. If the minimum wage law passes and they subsidize rides long enough to edge out Lyft then they finally get the monopoly they’ve been promising investors for the last decade but they also lose a huge amount of their TAM. The laws of supply and demand will eventually come into play.

And of course once they get their monopoly they will raise prices further to get profits and at that point I’d guess they would only be slightly less expensive then Taxis were before all this gig economy craziness.