I think it’s important to add that Uber could afford to lose money on rides and continues to do so…

I think it’s important to add that Uber could afford to lose money on rides and continues to do so in most markets? So the cheaper UberX is provided at the cost of:
a: Uber losing money

b: Drivers making less money (which seems to be the case now)

The cost to cover the cheaper service has to come from somewhere.