Yes, the fundamental problem is a weak state.

However, deregulating the industry made the problem far worse than it could have been. Our law enforcement is not entirely ineffectual, and a permit system would have provided more control than a free-for-all, by moderating supply. Buses remained more tighly controlled and I don't see bus warfare (there is an upward trend in accidents involving buses though I think that has more to do with poorly skilled drivers than profit-seeking).