So often when you look at a public policy area and wonder why things look so awful the answer is the tragedy of the commons. It helps explain everything from why ocean fish populations are falling to the sorry state of public bathrooms.
A while back Reason's Adrian Moore co-authored a book called Curb Rights–which describes transit stops with this framework and suggests using property rights to allow for competition. The idea is described here.
Now the Centre for Civil Society has proposed curb rights for New Delhi. The Centre's proposal is here. It's part of a book that shows how to transform New Delhi with market reform. One chapter that seems particularly interesting in available in its entirety: Power: from privatization to competition.