The purpose is to make supply closer match demand. If fares increase, more drivers will be willing to drive. If fares increase, less consumers will request ride

The purpose is to make supply closer match demand. If fares increase, more drivers will be willing to drive. If fares increase, less consumers will request rides. You're correct in assuming that increased prices will reduce the number of drivers demanded. But you're wrong in assuming that the pool of available drivers remains static when prices increase.