Now it's not-really-employees with magical floating prices and people accept it because "computer".
Sure, in some regions there is what basically amounts to a taxi mafia. But aside from that Uber/Lyft offer the definition of a gig economy where people on both end believe to be winning. Depends on the country, but in most countries it isn't the price sensitive choice.
Guatemala is the only place outside the US where I was not quoted 3-5x Uber prices by very pushy taxi drivers.
Taxi drivers are scam artists and thieves. There’s no reputational damage either, as you will never see them again.
Uber solves the reputation problem: every driver is rated, and poorly rated and badly behaved drivers do not get to work for them.
Still though, I shopped there last night.