True. It should definitely work this way in dense areas with lots of potential customer base. And taxis definitely seem to be in sad state in many places around the world.

What I meant is that a regular taxi is obliged to serve a customer even in a more remote area of the city, while Uber can just ignore it. Similarly, taxi networks usually are obliged to have cars adapted to people with disabilities, which again increases their costs, but ensures there is service available for people with special need.