Are startups solving any real problems for people?

I see most of the startups these days, especially in the web/app space offer some tiny enhancement problem or offer a value-addition. But why don't we see startups that solve some 'real' problems for the people?

Let me take an example. Instagram, one of the startups that got acquired by Facebook for whooping $1billion only offered a collection of filters. These filters were already available on so many places. If you asked what problem did Instagram solve, then there is no satisfactory answer to it.

But consider PayPal - it totally solve the problem of money transfer which earlier required going to the banks, depositing money and required a really long time. Paypal solved that problem by allowing anyone with an email ID to send money to anywhere in the world at a click of a button.

My examples may not be apt, but I think you got an idea of the point I'm trying to make. What's your take?