Regulation protects customers and workers. It ensure travellers don't get over charged compared to other forms of public transport, it makes sure the driver isn't a criminal, it ensures the vehicle is within certain standards, it prevents a free-for-all that would push the driver's income below reasonable levels.

I like the libertarian/wild west mindset of the internet. It doesn't however lend itself to integrated public transport systems - of which, private hire taxis are a part.

Plus, it is replacing local businesses with a multinational that will probably send its profits to an island (like lots of other technology companies), rather than contributing to local economies. I think it is the next Groupon though, so at some point it may pop.

Taxis pre-regulation were highly competitive.

Each driver did his best to cut costs and raise revenue like: break traffic laws, not pay for insurance, not service their cars, not clean their cars, etc.

And since hailing a cab doesn't really give a lot of consumer choice besides what cabbie happens to be driving by at the moment, "competition" is loosely applied at best.

Pre-regulation, this would mean chances were fair that you'd enter a cab driven by a verbally abusive asshole who can't drive well, blows smoke into your face at a 15 second interval, doesn't know the city, and has basically no regard for human life or decency.

At least according to Time magazine in 1976: Modern Living: Call Me a Taxi, You Yellow Cab!