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> Then it’s much more efficient to cluster those 100 different places into a few compact areas, so that most of the people can walk or bike, or take the subway.

Absolutely. But there will always be people who want to get to locations spread all around even a metropolitan area (as well as further-flung locations around that area), and while it's possible to build a public transit network to get them there, with enough throughput to cover the volume of people, the latency will still be worse than a point-to-point trip directly from point A to point B.




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