there are a lot of drivers in California with extra space and free time.

there are a lot of people that need rides.

There was a company that facilitated these two meeting and took a cut of payments.

It does not need to be a company. It can be an autonomous entity, eg a smart contract. Think ethereum + ipfs. just by way of example.

in other words, cut out the middle-man. Remove the target for governments to pressure and tax.

At that point, the free market decides.