universities duplicate many services offered by businesses (and even the government, to an extent) in the surrounding area. i certainly found this convenient as a student, but i always found it a bit silly. wouldn't it be more efficient to just offer an expansive shuttle service to take the students to important places? you could even give stipends to the poorest students. institutions tend to be pretty wasteful when they implement a ton of different out of band stuff in house.
What kind of services are extraneous? The problem is that once a campus gets big enough (a few thousand people or more at a residential university), it is the neighborhood, so you have to either provide the community services, or outsource to vendors to provide services on campus. And handing out monopolies to vendors is a bad idea.
