I think the parent was talking about supply side. I think you are totally correct but, I find myself not satisfied with the answer. All legitimate cab companies should puf money into hiring a company to build a sinple app to connect them to legal taxis. You pay, you get on the app. Tagline, "as convenient as uber, only legal".
It would be a hell of a lot cheaper than funding lawyers and lobbyists like they have been.
That's exactly the point though, it's the entire system that needs replacing. It's awfully hard to turn a ship around when it's as large as the taxi industry (with lobbies to boot).
Take one element of it - say the taxi companies said, "OK, you're now getting rated, and if you drop below 5 stars you lose your medallion." Drivers would lose their minds.
Imagine them saying, "Also, now your trips are going to cost 50% less" again, would not fly.
Or even, "You can use your own car, because that's way more efficient" (would never happen, because taxi drivers rent their cars for $40,000/month).
The taxi industry has done a hell of a lot to entrench itself and make itself irreplaceable, no matter how awful it is. In doing so, it has created a system completely resistant to change and innovation. The industry was ripe for someone to come along and replace it with a parallel system that was better and more efficient.
It would be a hell of a lot cheaper than funding lawyers and lobbyists like they have been.