This would be the immediate effect today. An alternative description is "VC money supports the axe hanging over unprofitable uber jobs". The question is - does uber need to find a solution to this problem today or in X months?
If somebody is vulnerable, I'd say it seems like a very bad thing to make them work by threatening them with homelessness and poverty, enforced by men with guns.
If most people want to help them, as apparently most people do (these laws need to get passed in a democracy, after all), why does that help need to be enforced by men with guns?
This is going to happen one way or another.