What keeps Uber competitive is access to a relatively cheap reservoir of labor force. They mediate this process where drivers compete against each other and extract a good rent in the process. The focus should be getting rid of the rent, not the competition.

While I wish these guys all the best and think it's a good paradigm shift, I don't think they will be successful for the same reasons most cooperatives aren't successful: the owner-workers see the business as a means to insulate themselves from market pressures. They stop growing and innovating and simply redistribute the larger than market compensations among each other. If many another drivers are willing to accept a lower pay for the same work, they will simply not accept them in the co-op.