Yet, it's the self-employed, unskilled labor in the cottage industry of driving taxis that "enjoys regulatory capture". Yeeeeah, right.
It's not the drivers. It's the taxi companies, often said to be affiliated with organized crime, who own the monopoly (taxi medallions) and make the big money. The drivers get shafted, like all workers who do not control the means of production. There are a few independent cabbies who own their own medallions, but they're exceedingly rare.
Not only does an independent driver need to buy a fabulously expensive medallion (probably from the mob), but he also needs to buy a city-spec taxi. Around here taxis are required to have all kinds of expensively-proprietary looking hardware attached. Uber/Lyft/etc use ordinary cars owned by their drivers. So already their workers own an important part of the means of production. They still don't own the dispatch system, but when there are several competitors they must compete for drivers as well as passengers.
I recently spoke with a taxi driver who was taking me to the airport (in a yellow city cab). He said he also drives for both Uber and Lyft. In his opinion he preferred Lyft, because he made the most money. To him it was all the same work, just different employers and different pay.
One good thing the current taxi medallion regime in SF does provide is a sort of indirect retirement system for the drivers. Don't recall the exact details - heard about it from another cabbie. Apparently after working a long career, a driver is given the opportunity to buy a taxi medallion from the city for rather less than its market price. The driver can then sell it or rent it out. So in effect it is their retirement plan.