>Some percentage of riders will forego the benefit of uber trips due to the higher cost. This is not necessarily true. What you're assuming is that the demand

>Some percentage of riders will forego the benefit of uber trips due to the higher cost. This is not necessarily true. What you're assuming is that the demand is highly elastic - that a small increase in price will drive a large drop in use. It's possible it is entirely the opposite, a small increase in price causes no practically no drop in use. This would result in higher total pay. Either way, this will likely be balanced by drivers stopping driving for uber, or more drivers starting to drive for Uber. Uber will have to account for this by shedding excess drivers. In reality if it's true that Uber riders are highly sensitive to price, then uber's entire business model falls apart since the plan the entire time was to gain a monopoly and jack up prices. If it turns out that jacking up prices means a huge drop in ridership then the value of their busienss is actually way smaller than what they claim and they are likely unable to run a viable business while paying minimum wage.