Howard,
Inefficiencies and redundancies can definitely exist in the free market, but I submit that they are much more prevalent in government. Competition and consumer choice in the marketplace of goods and services are quite effective at minimizing these things. And the best part is, such a system doesn't rely on robbery (paying for goods and services with stolen tax dollars, as Muni does).
You're right to point out that there already are a number of independent transit alternatives in San Francisco. Perhaps a good question to ask would be how we can expand these and other transit alternatives to allow the general public as well as their institutional users to take advantage of them, and to get the public to see them as *public* transit no less worthy of their support than the government-run transit system? For too long government has wrongly monopolized the word "public", as if their violence-based services are the only ones really "serving the public". We have (independent) public schools, public restaurants, "public houses" (pubs), and many other services not run by the government.
Love & Liberty,
((( starchild )))