> Any such service would immediately be outcompeted by one which doesn't provide all that - it's trivial to clone an on-demand service, and if you have lower costs you can be cheaper.

In other words, it's the classic 'race to the bottom' problem, which is exactly what the OP is talking about. It's not helpful at a societal level to out-compete each other into the ground.

I don't agree that companies should become safety nets, but there absolutely should be a liveable minimum wage, that companies are expected to adhere to.