There's a whole spectrum from door-to-door taxi service to fixed-route public transit. I don't see why consumer expectations couldn't be set such that it's not weird to be dropped off a block or two away. Take a (more expensive) manned car if you need to be dropped at your door step. The same tradeoff id already at play with buses vs taxis/Uber.
Plus there's already a precedent in Uber Pool for something that's in between a bus and a taxi. They even will ask you to walk a short distance sometimes.