In the consumer space in particular it's the service that offers the best combination of service and price that's going to win out. I understand you are willing to have a lower quality service with higher prices, but the market likely says otherwise.
It's also not something I'd want to start a business on. Even assuming you think you can make the economics of it work out under the new regulation, you're gambling that CA doesn't change the law again later - either rolling back this restriction, or adding some new one because they decide that you too are being abusive. I'm not sure I'd want to invest in any company trying to get into this niche.
I don't think we can actually say what "the market" says since the market hasn't seen what a long-term cost basis and experience is for ridesharing that's both profitable and adheres to local regulations. Of course people want artificially cheap things, but that's not really a good start for determining what the market is actually willing to bear.
