It's their own fucking faults. They lobby to make sure this is the system that's in place to prevent competition from companies like Uber. They got the laws they paid for, it's the people who bought the first wave of licenses/medallions whatever that made bank, now everyone else has to deal with it.
An upstart breaking that system is exactly what real business needs.
Medallion owners bought the medallions with the understanding that they were buying into a limited monopoly.
I'm not opposed to changing this agreement, in fact I encourage it, but if you're going to do so you need to compensate who bought the medallions.