From a cost stand point, Uber and Lyft can never compete. The costs of hire car are car purchase, maintenance, insurance, and drivers. Uber and Lyft put all those on individual drivers. The thing is fleet management and maintenance has economies of scale, that Uber and Lyft's individual drivers can never touch. So, the only option for them is to squeeze that additional cost out of the drivers and somehow also squeeze out a profit for themselves. Of course, when they squeeze drivers too much then people won't drive for them, and then riders can't find rides and then they don't make money. The only way they could become profitable is to get a monopoly and jack up prices. Unfortunately, their business plans involved eliminating the barrier to entry that would allow them to have a monopoly. Basically, Uber and Lyft can never make money with their current business model. Driverless was the only possibility where they could eliminate the driver and get the fleet management economies of scale. Although, that was most likely not serious and more about hype to get to the IPO and keep the stock price up.
But, they got their IPOs, they should be doing everything they can to keep the stock price from tanking, so all of the pre-IPO investors that financed the billions in losses can get their money back from the rubes who think these companies can ever be profitable. They will be the ones left holding the bag when Uber and Lyft run out of cash.