There's a huge list of reasons why Uber is nice to have, taxis and Uber are not even close.
so what's benefit for user? all i see at Uber is avoiding taxes and breaking competition by ignoring regulation which is why they are not that big in EU
* I want to call a driver and know if the ride was accepted, if the car is coming, how much time it will take for it to arrive, all in realtime... and specially, I want feedback if the ride is cancelled;
* Not to be called names if the ride was too short;
* Be able to rate the driver and know that anything I complained about would be taken seriously;
* Pay a fair amount for a decent service.
There are a number of taxi companies that are already doing apps and such. I think this is great. I have no such options where I live, therefore... Uber.
That being said, taxis have an advantage of being available if people don't have a phone or it's uncharged. So there is a marginal, practical use for taxis, but by-and-large mobile ride sharing is more effective.