Industrialists who built the railroads and core infrastructure in the 19th century exploited labor, corrupted governments, and built monopolies. Uber is also exploiting labor to some extent, but its disrepute is largely because of its arrogance and frat-boy behavior -- not only its business practices. And this behavior is only slowing the company down.
It is likely that these services will just exacerbate the differences that already exist in the quality of public transit in different areas. The localities that invested and ran their systems well won't be as impacted. In the areas where frustration is higher, the problems will surely become worse when revenues and ridership decline.