the value add of uber is that you can use your phone's GPS and a map to tell someone where to pick you up instead of calling up the taxi company and describing where you are. I know taxi companies are starting to implement this stuff, but they didn't seem to be in a big hurry to do it before uber/lyft showed up. I haven't tried in a while, but I bet the smaller cab companies still don't have anything like this.
even if their value add is just getting a driver to me a little faster, this isn't nothing. the difference between a five minute and a ten minute expected wait isn't just five minutes of wasted time; at the margin, it's whether the customer decides to purchase a ride at all.
I tried to take a cab exactly once, in Los Angeles. I Google searched for a number. They asked me where I was, exact address. I didn't know the exact address. Even on Google maps it took a bit to figure out the exact address. After some back and forth, they inform me that they don't operate in that location and give me the number to another company. I call the other company. They tell me the cab will be there in 20 minutes, maybe. I said, "what do you mean maybe?" I was already cutting it pretty close on a flight.
Uber had just gotten into LA a couple of months back. I downloaded Uber and within a couple of minutes, I had a ride on the way, and I could see exactly where the driver was and how long it would take to get there. Hate the company, but the product definitely added value.
even if their value add is just getting a driver to me a little faster, this isn't nothing. the difference between a five minute and a ten minute expected wait isn't just five minutes of wasted time; at the margin, it's whether the customer decides to purchase a ride at all.