I see this complaint all the time and I truly can't wrap my mind around it based on my own experience. The difference between yellow cabs and Ubers is night and day. I've had countless cabs drive away and refuse to pick me up because they didn't like where I was going, and that's never once happened with Uber (I'm sure it happens some behind the scenes but once I get matched with a driver it's very reliable).
There's even an entire industry in NYC of "gypsy cabs" in some of the outer boroughs, because the limited number of medallioned yellow cabs never go out there since it's not profitable enough.
If I'm going to take uber to the airport, I'm careful now to leave an extra 30 min over the two hours I would normally plan for.
now it doesn't make sense because they know where you're going before they accept.
some have told me that if they reject too many rides the algorithm punishes them.
There's a lot of institutional knowledge baked into the cab industry and Uber/Lyft thought they could figuratively reimplement the whole deal in a weekend.
HAAS Act '37
NYC TLC '71
Operation Refusal '98
Not that NY has it exactly right, but at least there was some structure.
The entire business model of Uber is regulation avoidance. They did not "distrupt" any business they just did as you said and stole all the profitable easy routes/riders, avoided pricing regulations, and driver compensation regulations.