Uber and Lyft can be put out of business very quickly if the protected monopoly of Taxi companies and various commissions just started offering a more competitive environment; that's the big threat here. You have a service that comes in and undercuts a cash cow for governments and for license holders. They don't like it because it threatens their bottom line and that's a valid argument but instead of being more competitive, they protest and burn things (like in France recently)
It's easy to provide a cheaper/better service if you're avoiding expenses and legal requirements that are legislated for your competitors. Could 'official' taxis do a better job than they are now? Sure. But let's not pretend they're currently operating on equal footing with Uber/Lyft.
Do you suffer painful illumination? -- Isaac Newton, "Optics"