> Uber’s initial intention was carpooling where someone would put in their intended destination and could pick people up for money.

Historically incorrect. Uber started out as a black car service (with California tpc licenses). Lyft started as a pivot of the carpooling app zimride named after the founder.

> Their initial subsidized prices convinced many people to advocate for an exception which was often granted

That's not really what moved the needle. What moved the needle on exceptions was the sharp drop in drunk driving incidents and fatality.