They can do transfers to other shuttles or other public transit on fixed routes to optimize the routes.
The govt would never come up with rideshare type algorithms.
Maybe just an exception to the rule, but still worth pointing out.
You go the far distance to a hub which has lots of parking space and switch to subway, tram, bus or foot traffic, or bikes, or the hip electric scooter. And disadvantaged or disabled people get better accessibility. Pity it is hard to retrofit into misdesigned cities.
See EU and how Uber is not making millions here. And taxis are relatively expensive.
Also check South Korea and how relatively cheap normal unsubsidized taxis essentially prevented Uber from getting a foothold...
It does not compete with owned cars at all.