Hey Paris:

This is an interesting (if flawed) analysis.

There are two core issues IMHO:

1. Government can do better. There is no doubt about this. Are you familiar with Code for America or CfA labs? Check it out — it’s a movement to get quality technologists to work for government. It’s an imperfect idea (why would someone at the top of their game want to deal with terrible bureaucracy, mediocre pay and the vagaries of political changes?) — but it is trying to put entrepreneurs together in service of the government’s tech needs.
2. Government‘s are not innovating fast enough. This isn’t (only) because of some nefarious plot to undermine governmental efficacy — it’s also a VERY common issue in the for-profit world. Established monopolies, in particular, have a tendency to fail to spot innovations on the horizon. Transit agencies tend to not be very nimble in the first place. This is a big big leap for most of them to make, IMHO.

And I noticed you may be Canadian (as am I). One of the most interesting case studies in this IMHO is the TTC. When I was a young child (mid-late 70s) in Toronto, the GTA had a population of around 1–2 million people, and the TTC was the envy of the world — considered one of the best and most thorough transit designs. In 2018, with a GTA of 6 million, the TTC has fallen way (way way) behind. From top innovator (intermodal captive rider, edge-to-edge coverage) to absolute laggard, the TTC shows what happens when you don’t invest continuously in forward thinking transit.