Well let's look at ridesharing as an example. It's basically dominated by Uber and Lyft, i.e., minimal competition.

The nature of the market is that you need a large network of drivers to succeed. That network is a powerful barrier to entry. And it likely requires a lot of funding to achieve.

A government could foster more competition within the industry by funding new start-ups, in an effort to bring the market closer to free market status.

This is what China does with many of their industries, and they do it really well. Despite their "communist party" brand, they are actually doing capitalism much better than the US in many areas.