The people living in the "geofenced" areas don't care about how "incomplete" it is. The point of a self driving taxi is that you don't have to own the vehicle.
And this is a vast difference. You can expand a self-driving taxi service by running an Uber-like service and dispatching w/safety-drivers for journeys taking you out of the area, and its functionally equivalent - people are buying the mobility, not the self-driving. You get to start rolling out without solving the whole problem.