> That is basic economics and I see it all the time in the marketplace

Yes, it’s a market failure. The solution is not to never attempt anything that might result in market failure.

> Wait until the competition cancels your favorite air route and see what happens to the prices

Bad comparison. The locality controls the airport. Not the route. Not the destination. With Uber, the locality controls the pick-up and at least significant parts of the route. (There also isn’t any federal preëmption of ride share regulation the way there is in the air.)

> What are the easy remedies? Restart public transit?

In the event Uber bankrupts the bus system and also Lyft and Waymo? Tax them. Increase use fees. Revoke bus lane privileges.

Again, this is a bogeyman. It’s never actually happened in urban transportation in the modern era, particularly, never with Uber.