Much that has been said about Uber's multiple self-inflicted wounds during a period of very rapid growth has tended to cloud the extent to which the company's innovative approach has transformed urban transportation. Last week, on a trip to London, I was vividly reminded of the next stage of this transformation by a traditional London taxi driver.

It is not easy to become a London cabbie. Applicants have to go through four years of training in the legendary knowledge of the city's streets, alleys, twists and turns. They are subject to licensing requirements and a host of regulations. They drive expensive black cabs, which have become icons. And, these days, they are heavily outnumbered by lightly regulated competitors who go through little training, drive their own cars and rely heavily on technology for client pickups, routes, payments and invoicing.

No wonder cabbies have been so upset with Uber, having tried several times — and failed — to stop the penetration of the ride-hailing company. Yet the anger could be evolving.

After resisting everything Uber, the cabbie told me that he and his colleagues are adapting. For example, he is part of a syndicate that now uses an app similar to Uber's to provide riders with an expanded menu to hail and pay taxis, as well as offer them more control and transparency. The sector is accepting credit card payments, all to improve customer relations.

In a moment of frankness, he admitted that Uber has delivered a much-needed wake-up call. This is another illustration of the ways Uber is still transforming the once-dominant world of black cabs.

The initial phases of Uber's technology-led "disruptive innovation" lowered in a remarkable way the barriers of entry to both the supply of urban transportation services and the demand.

By allowing massively underused assets — personal vehicles otherwise sitting idle — to double as taxis, Uber significantly increased the provision of the service. And by measuring client satisfaction in a timely and high-frequency manner, this additional service would be clean, responsive, accountable, efficient, cost-effective and friendly.

The revolution on the demand side came from Uber's use of the power of mobility, big data, and artificial intelligence. It met the growing desires of clients to gain greater direct control over activities that had become ill-served, increasingly distanced and, in some cases, alienating. By making the payments and settlement process more efficient and transparent, Uber further improved the experience, leading many to substitute the service also for private cars.

Uber has not totally eliminated taxis. But now these are forced to upgrade their services. And once again, the consumer benefits.

The Uber experience of beneficially influencing both supply and demand is still in its early stages; it is sure to spread to other market segments and industries. Other companies, especially startups, will need to study not just Uber's innovative accomplishments but also its internal failures, including the importance of culture, humility and ensuring that rapid growth is backstopped in a timely fashion by adequate structures, compliance and people. A humbled Uber itself will learn from past slippages and, judging from the series of recent encouraging announcements, correct course.

 Mohamed El-Erian is a Bloomberg View columnist.