[pavel_lishin]

> and as a result even private competition can not emerge.

Demonstrably untrue, if you were to look at taxis, ubers, lyfts, and ... small vans that operate exactly as you describe, in many large cities. (In NYC, I know there exists such a van network in Brooklyn, and near the George Washington Bridge running across the river.)

And besides, buses have advantages that "intelligent routing"-based vans - predictability and reliability. If I need to get somewhere by bus, I know exactly which stop I need to go to, and usually when the bus is scheduled to arrive to pick me up, and also to drop me off.

(Granted, sometimes those times aren't right, but they usually are, most of the time.)

[nine_k]

Confirmed: the van network in Brooklyn exists, a ride still costs $2 (compared to $3 on an MTA bus), the vans / minibuses largely follow popular bus routes, and stop basically anywhere along the route where it is safe, including on a red light.

[mothballed]

I've ridden collectivo type vans in a number of latin america countries (Philippines has same although sometimes in form of jeepnee), they work quite well, you shout 'para' or some such where you need to stop and wave boldly when you need to get on. Much prefer it to a bus, and also since they are privately owned it is very easy to kick assholes off which is one of my biggest gripes with dealing with public transit.