The flaw in this thesis is that Uber charges 25% of the fare, plus fees, while the driver takes on the cost of the vehicle (depreciation, maintenance, finance),

The flaw in this thesis is that Uber charges 25% of the fare, plus fees, while the driver takes on the cost of the vehicle (depreciation, maintenance, finance), gas, parking, and pretty much everything else. If you get rid of the drivers, then Uber has to pay for all of that. That would be vastly more expensive, riskier, and if passengers really did expect prices to drop 5x, operating margins would evaporate. Making 25% off of somebody else's capital and labor is a pretty good trick, I don't see Uber or anyone else getting a better deal than that.