You're not wrong, but you are leaving out some convenient parts of the experience. Yes, before, you could call a cab company and they would come pick you up and take you somewhere. But, you didn't know how long it would take for your driver to pick you up. had no idea how much the ride would cost you, and there was a pretty good chance the driver wouldn't accept a credit card for payment whether it was company policy to or not.

When illegal cab companies came along, they forced competition by giving you realtime information on where your driver was and how long until they would pick you up, price estimates before your ride begins, and a guaranteed method of payment that isn't cash. Cab companies had to modernize with mobile apps, lower their prices to stay competitive, and improve the overall customer experience.

For as badly as the drivers are treated by the companies, the services were successful because the existing experience with established cab companies sucked.