Well, no. In a low density US city a bus route goes into all the places where nobody is waiting in the name of increasing coverage. Adding more routes is impossible due to lack of funding. This makes it take 2-3 times as long as a car to get anywhere, which it then makes buses transportation of last resort. Which further decreases ridership and funding.
A municipal service cannot implement on-demand hailing because it has to serve the one or two people who can't use a phone (never mind that it would be cheaper to hire a personal assistant for them to book their rides). And so innovation is left to private enterprises.
Here come the downvotes! However, on a sibling thread about on-demand buses in China the same folks will praise innovation...
This isn't true. Municipal routes can be optimized to serve the majority of people, and then a ride hailing service can be offered to feed off-route users into the fixed-route network. Most transit agencies offer this service, and many offer full-on ride-hailing (example: C-TRAN's "The Current" in Vancouver, WA).
I don't know where this "can't use a phone" thing comes from. ADA requires that transit services above a certain size offer paratransit, but doesn't specify how those rides are booked. I haven't run into anyone who can't make phone calls and can't book rides online.
Surveillance is all about Flock. The feds are handing out grants to everyone, and the police drop the things everywhere. They can locate cars, track routine trips, and all sorts of creepy stuff.