Skill issue. Taxi companies aren't able to innovate and adapt and improve, despite the competition from Uber, preferring instead to use lobbying and regulations too survive in a post-Uber world.
Actually, it is a marketing issue. Taxis did innovate and did improve and imo are a better product than uber today. They have an app that is no different than what you expect with rideshare apps. Actually it is better, I can schedule a ride and get a flat rate with tip already baked in to places like the airport. No need to fret about surge prices at all, what I see when I schedule it today is what I pay when it comes tomorrow or next week or next month, whenever I've scheduled it.
But, no one uses it, because uber and lyft have become kleenex or coca cola: the brand name associated with the basic phenomenon, such that consumers cannot even think about the phenomenon without thinking first of the brand and probably resorting to the brand.
Last time I was in Vegas (in 2026), there was a $40/$60 surcharge to my destination because the taxicab commission was able to enact regulations that says taxis can charge that, while Lyft/Ubers to the same location did not have to pay it. I was waiting at a smaller hotel for 20 minutes for a taxi to arrive to the taxi stand. There was a line of people an no taxis in sight. The time before that, I got hit with the ole "credit card machine doesn't work" bit.
If they wannted to innovate, every taxi stand would have a QR code to download their app, you set your destination while you're waiting in the line (if there is one), you get in the cab, the driver scans the QR code from your phone, payment happens via CC in the app, no surprises either. The phone app would show you the route, and then give an estimated price, and if there's an overage due to traffic/other problem, give me a notification on my phone. It would also let me set preferences for conversation/temperature.
But, no one uses it, because uber and lyft have become kleenex or coca cola: the brand name associated with the basic phenomenon, such that consumers cannot even think about the phenomenon without thinking first of the brand and probably resorting to the brand.