Yes, an actual race to the bottom may eventually drive someone out of business. But that doesn't make competition bad. However, over time, all things race towards the bottom. What was incredibly expensive or even impossible 50 years ago now costs a few pennies to produce. Yes, if you made the expensive version 50 years ago and 25 years later someone figured out how to make it for 10% the cost, you will be hurt by this. Society can't stand still. It is always moving forward. A lot of times that happens at a pace that generally people don't notice when things become obsolete. However, there are also many times especially with technology where it is a dramatic enough change that society takes notice. And sometimes that means people have to adapt quicker than they'd like. Uber and Lyft didn't just shake up the taxi industry, they also created a market for rides where people would NOT have taken a taxi. Now you can find a ride at almost any time of night in places where taxis certainly aren't patroling and many times won't even go. This will eventually make taxi companies rethink their model to compete. Taxi service hasn't had real competition in a long while, and that made some people comfortable that shouldn't have been.
That doesn't mean that Lyft or Uber couldn't do some really stupid things to try to cut costs to compete, but if I sign up as a driver knowing I'm going to make $10 an hour equivalent and I decide to work 100 hours a week, that's on me. Uber and Lyft existing did not force me into a $10/hour job. But that's clearly what the market will bear. Uber and Lyft don't just compete for customers (riders) they also compete in some areas for drivers. And that is a GREAT thing for drivers. It may help keep wages/prices steady, it may make them go up, it may make them go down. But that's all based on real economics. We as consumers who know what we absolutely need to make to survive must adapt constantly to changing conditions. Sometimes that's easy, sometimes that's hard. Maybe it means finding a new job. Maybe it means working harder at your current job. Exceptionalism isn't comfortable. It means always moving forward. Maybe some day society will achieve a level where for most things there isn't a benefit to making it better or more efficient. I don't see how that will be anytime this century or even millenium, but who knows.