Lyft currently pays more, because that's probably last thing that keeps them alive. Many drivers work for both, if Lyft would pay same or less then what would keep them there?
As for the negating point, this is not something that happens instantly, but if you want an example then look at restaurants. There's even special minimum wage (currently $2.13) for jobs that receive tips.
Not in California.
And your point is kinda negated by the fact that Lyft usually pays more than Uber.