However their pricing was never real. They took billions of VC dollars to make it seem like Uber could be better AND cheaper which drove every tradition cab company out of business. It also meant that all of the benefits of Uber accrued to the rider and the shareholders, the driver's didn't do so well.
Now they have to raise prices to a rate that's actually profitable. Meanwhile the taxi companies got their act together a bit. They have apps now, they take credit cards. So things will end up better across the board, just maybe not cheaper.
Consumer benefit aside. Ubers pricing strategy should probably have been illegal. You should not be able to flood a market like that. In international trade this is called dumping [0]. I wish we had a similar law for tech companies that want to destroy incumbents with VC money.