Edit: Not significantly smaller, as pointed out below 4) Are typically more compact than a black cab - take up less road space
So no, it's not about congestion in that sense. What the author appears to be suggesting is that there are more cars on the road plying for the same trade, and the more journey miles taken in an Uber, the more idle time a black cab will spend waiting to be hailed - either congestion on the road, or congestion in the taxi ranks.
However, if that were the true ulterior motive, that could be applied to any car service that competes with black cabs, not just Uber.