Comment Re:Competition Sucks (Score 1) 507
Competition sucks. Gotta keep that privileged access to the market.
There are many legitimate reasons to limit the number of cars available for hire. Taxis drive around the city core looking for passengers, or park in the city waiting for a call. Increased competition would make this worse. In some cities, traffic is already a nightmare. I don't live in New York or any particularly dense city, but I have driven in many. Taking even a small number of cars off the road is often very desirable.
You can limit the number of delivery trucks, personal vehicles, and public/private busses on the roads only so much using financial incentives (high tolls and parking fees). At a certain point you need to use other methods to limit the number of cars, and limiting the number of taxis (and taxi-like services) is something that is easily implemented through taxi medallions. It is also reasonable because in most cities who don't license "enough" taxis, there are plenty of transportation alternatives.