> That’s not how it worked
It's precisely how it worked everywhere I've lived. What you describe sounds like a low density suburb or smaller town. Yeah, social pressure in those situations still works.
The only time I've seen things work as you describe were small/vacation towns when I was visiting for a wedding or whatnot. The type of places where there are a dozen total cabs for the entire county.
Any major (call it NFL tier) city scheduling a pickup was a laughable joke. You quickly learn when you move to such places the first time you schedule a cab how totally unreliable it is.
Even the overly chatty cabbies would be happy to tell you how much of a scam it was, and go on to describe how every driver but them does X, Y, and Z to avoid taking such calls. This is the sole reason Uber got its foothold in my household.