Let's also not forget that these ride hailing services are MASSIVELY subsidizing the cost of rides in order to attract drivers/users. That hurts business for taxis. In my mind, this is a sort of protection that ensures taxis stay in business as another, publicly regulated option. What happens in other areas of Uber/Lyft kill all the taxis and then decide doing business isn't profitable and leave (or all their drivers leave I've subsidies end)? This might seem like a farfetched scenario, but remember that Uber is still sitting in a large cash reserves. What will change when they need to turn a profit every quarter? If they have established a monopoly (even locally), they can charge users as much as they want. If they've established a monopsony on drivers, they can lower wages. In my opinion, subsidizing a long-standing industry from a monopolistic competitor with gobs of money to throw at the market looks like a good move.