It can certainly be a time consuming and frustrating for the driver.
And it's true there are now easier less expensive alternatives than in the past for the traveller, which shifts the cost/benefit.
That said, it's likely part of the mitzvah of kibud av v'aim.
It may also be part of the mitzvah of hachnosas orchim (escorting guests on their way).
In some contexts, its more than just the economics. It shows kavod/chashivus to the passenger; speaks to, reinforces, and potentially even influences the nature of the relationship.