This is how capitalism works, survival of the fittest. If someone comes along that allows the drivers to make more money, prudent drivers will likely switch to that service.
> This is how capitalism works, survival of the fittest*
* Unless you have enough money to change regulations in your favor, skirt regulations, and so on, in which case it's survival of the financially-backed.
Access to capital and the political world are part of "fitness" in this environment. Generally, the companies that are seen as most likely to survive have easier access to funding than companies that are seen as riskier. The same can be said of companies that are likely to succeed v.s. simply survive.
Don't forget that even if you have a stellar implementation and great service, you may not be able to secure financing for marketing/lawyers/etc. or other "gate-keepers" that would enable financing ... thus there's the "who you know / who you can influence" aspect. I guess that's kind of my issue when I see people talk about how great a free-market is, when the reality is that our "free"-market has numerous levels and types of gatekeepers which prevent those "genetically"-strong startups/companies from disrupting. Hmm, my explanation on that was absurdly bad, I apologize, but hopefully you kinda get what I'm saying, hehe.
But the best part of this is that as a consumer of taxi services and digital ones like Uber (I've not used Lyft but love Uber), we get cheaper and ultimately better service by them competing. I say bring on the competition!
It is a no brainer.