They just needed a (usually tiny) little office and 1 person to answer the phone.
That also makes for terrible ux. One of the things ridesharing apps got right was the ux, ie.
1. being able to hail a cab via app, and see its ETA in real time
2. being able to pay with credit card, without fear that the machine "broke"
3. a rating system to weed out bad drivers
4. after-ride support
OTOH, I've taken a decent number of sketchy Lyft and Uber rides: ones where the driver was clearly not the person on the account (possibly a relative?), where the car didn't match, etc. All in medium to large US cities.
I recently had a taxi refuse to take me from the Vegas Strip to a friends house on the North side. It’s because they’ll have to drive back to the city center without a ride.
There’s a ton of hustles. Sometimes they’ll hang a bunch of phones in a tree near a strategic location to get gigs.
It gets to the real problem. If you get in an accident in an Uber and get hurt, there’s a high likelihood that you’re fucked.
1) Where you goin'?
2) How do you get there?
Which is... if you're new to the area or going someplace new, how do you answer that second one?
Plus, there’s a 50 year old woman making $19/hour to smoke cigarettes and dispatch cars, a mechanic, and a bookkeeper.
Also many cab services have started leveraging apps like zTrip.
I'm kind of glad "Yo Taxi!" exists in some form now, what with the wheels (figuratively) falling off Uber and Lyft.