It probably wouldn't be a bad thing if most cities just banned uber and created their own apps (or hired a company to do it for them). The network effects in the taxi market are so strong that one company will inevitably end up being a monopoly.
Once the monopoly is locked in the winning company will just milk it for all its worth, simultaneously raising prices and crushing wages. That's bad for everybody (except them).
2. Uber is breaking the very foundations of the monopolization of the taxi industry. The only monopoly they will maintain moving forward is through customer loyalty based upon perceived value. If Uber falters, there is very little protecting them from a competitor gobbling up their market share.
Which taxi company's app are you going to use as a passenger? The one with 5 drivers within a 5 minutes' drive, or the one with 1 driver, 25 minutes away?
Which taxi company will you sign up with as a driver? The one which has customers everywhere or the one which doesn't?
Why pretend that network effects do not exist in this industry?
Sure would be nice if it were just about customer service and value, but it isn't. It's about network dominance.
Things change quickly when only network effects are stopping competition in a fluid market where all you need to do is download an app to become a user or go through a short process as a driver.
Uber has eliminated many of the tools used by the monopolists. Have they eliminated the value of reputation and high availability? No, but nobody said they had.
Not all details are "untie this technological knot." Not all companies that fail do so because they didn't get the technology right.
Are we so bored with the struggle for life? Is that game really fun?