> There is no reason a well administered city government couldn't do all of this.
It would be great if they did, but I'm surely not holding my breath for everyone to get a well administered city government. In the hypothetical that we're discussing (uber/lyft usage that's high enough for most rides to be aggregated) the cost of using uber/lyft would be much lower per-rider. In that world, cities would be better off giving residents subsidies for private ride-hailing use.
As long as there's a competitive market with multiple entrants, the cities wouldn't be at the mercy of the private corps. The concrete benefit of the private companies is much more competent technology development, and the option to switch if they're not giving you what you want.
> Not "everyone." Just people with smartphones at the moments when they happen to have smartphones with them.
"Everyone" was the premise of the comment I was replying to. But seriously, smartphone penetration is quite high. And how many smartphone users don't carry their phone with them when they go out?
Buses aren't a good choice for "everyone" either--they only help people whose trips align with bus lines and schedules.