That would make sense if taxis weren't basically a mafia-like organization in most places.

Here, the taxi drivers are the absolute worst. They drive worse than student drivers. They don't give two shits about the customers - if you order a taxi and they find someone more convinient hailing them they'll just pick up that person and never come to pick you up with no notice. They can't follow basic GPS directions from their device and you often have to guide them.

The taxi companies send any complaints directly into the shredding machine. They have a legally enforced monopoly over a region and customers have no choice.

And I'm talking about a major city in America.

There is definitely a healthy middle ground, but just going back to taxis is not the solution.