It's a monopoly in the narrow vertical, but that power is diluted given the existence of close substitutes (driving yourself, bus, train, and some remaining old-school taxis). No doubt there is still some monopoly power, though.

> I'd argue the municipality should just operate it as part of the public transit system.

I'd probably prefer it if you just regulate their monopoly power. I don't like the idea of each municipality or country having to write their own software for an Uber-like platform. Seems like a lot of duplicated effort. And after the Obamacare website cost blowout, I don't trust government to write software well, it'd end up as money being stolen by people like Accenture.