alt Hacker News> Here come the downvotes!
Government/municipal transit exists, in part, to service a “long tail” of need among the residents. Its goal is not innovation but reliable presence for many.
There is room for private taxis, buses and trains full of people, private cars, bikes, etc. in the wide distribution of transportation modes.
Transport depends on a good network of places you can get to. That is why transit tends to be a monopoly - if there are two players there are places you can't get to so you want whoever you selected to serve more places.
Note that I count roads as one of your transport networks.