It's easy to offer a better service when you're cheating. And when a cheater wins, the service invariably gets much worse very quickly.
Uber was able to offer "reliable pickups, not complaining about your destination, and not having 'broken' credit card readers" for a competitive price by a combination of:
- Not servicing people with mobility issues
- Not servicing unprofitable areas in the city
- Subsidizing fares with their ~infinite VC money supply to a degree that didn't even pretend to be sustainable
- Offering unsustainably favorable conditions to drivers to create the initial impression of premium, high-quality service
- Blatantly breaking the local laws, and using their ~infinite VC money supply to avoid law enforcement and tie up any cases against them
The last three points being a plain and obvious bait&switch. The business was based on hoping they'll destroy local transportation businesses and gain reputation with people to make regulators face public backlash faster than they run out of money.
Market by market, they succeeded to a greater or lesser degree, and then perfectly predictably, they behaved like the paragons of honesty and virtue they always were: the drivers got shafted, service went to shit, and all good it did was to replace local businesses with multinational franchise of shit pseudo-taxi.
A McDonald'ification of the taxi market, if you like, except McDonald's doesn't suck as much.