You seem to assume that this service is expensive. I'm really not sure why anyone would think that, other than some notion that Larry Page is a comic book villain who hates the poor. It appears to be cheaper than any other commuting option for most people (~55 cents/mile).

Public transit, at least here in the SF Bay Area, is horribly mismanaged. Google does not have the power to force the 37 independent squabbling agencies here to work together, to force BART to kick obvious criminal activity out of their stations, or to fire anyone when new train stations fall behind schedule fifteen times in a row. Companies that provide good services should not be punished for not being magically omnipotent.