I actually agree with both of you! If I'm evaluating Doordash and the Uber Eats services, I think the OP is completely correct that the world would be better off without them.
If I'm evaluating Uber the ride sharing service, I think you are completely correct that it has improved ride service dramatically.
For DoorDash and the ride-sharing companies I really wish there were some sort of localized non-profits that provided these services with none of the underhanded and sleazy tactics these companies use to try and achieve profitability.
In Austin, TX there actually was, it was called Ride Austin. In 2016 Austin voters passed a resolution requiring drivers to be fingerprinted, so Uber and Lyft left until the city was overruled by state government about a year later (this happens all the time - Austin passes some liberal ordinance that the conservative state government later rescinds).
In the time that Uber and Lyft were gone, we had lots of services that popped up to try to take their place, and Ride Austin was probably the best known. I liked it - it paid drivers better and there was an option to contribute to local charities. It was a non-profit but I believe it was essentially kicked off by a local tech billionaire (Joe Leimandt, who has been featured on other stories on HN). But that said, the app and service were never as good as Uber/Lyft, and though I tried to support them when Uber/Lyft came back, they weren't really able to compete and eventually closed down.
Thus, as much as I like the idea of a local nonprofit providing this service, I think the Ride Austin example is as good a one as any to show why it's not really feasible.
I usually use Uber/Lyft because it works most places, but the ride-share experience in Vegas was horrible. However, every casino/resort has a taxi queue. And those guys don't fuck around. They'll get you where you want to go, avoid major traffic, and the taxis were in decent shape.
Has everyone had amnesia about how horrible the general taxi model was before Uber? I can't count the number of times I was blatantly overcharged (e.g. in DC with their braindead "zone" system before they switched to meters) or took an egregiously out-of-the way route, or the cab was filthy, or it just didn't show up when I had scheduled (and I had no way to see where the cab even was), etc. With no feedback loop/rating system there was 0 incentive for cabs to improve their service.
I agree that the VC funding model has resulted in things being grossly mispriced, but even if rides got significantly more expensive, the improvements Uber brought to the rides-for-hire model were huge and everyone just forgets how much people generally hated the taxi experience before they showed up.