Uber shouldn't have to wait in line with the other taxis, since they're there to pick up a specific individual, and not any random person looking for a taxi.
Uber is acting more like a friend/relative picking you up than anything else, and as such, the $17 fare represents a $17 fare (or whatever the amount happens to be), and not "a 15 minute wait for a measly $17 fare".
Like airplanes, taxis are only making money when they're in transit with a fare. So, because they're losing money waiting in line, it discourages them taking short fares because it doesn't give them the opportunity to make as much money, lowering their overall hourly rate.
Uber is acting more like a friend/relative picking you up than anything else, and as such, the $17 fare represents a $17 fare (or whatever the amount happens to be), and not "a 15 minute wait for a measly $17 fare".
Like airplanes, taxis are only making money when they're in transit with a fare. So, because they're losing money waiting in line, it discourages them taking short fares because it doesn't give them the opportunity to make as much money, lowering their overall hourly rate.