That's demonstrably untrue. Look at the rise of Uber. If I started running an unlicensed taxi, they'd come down on me very hard and very quickly, but Uber had the resources to tie up enforcement until public opinion about their VC-subsidized "taxis" prevented any action.
I can't speak for the rest of the world, but here in the Netherlands, it wouldn't have been the state that would come down 'hard'. (its the other cab drivers, physically assaulting you)
As a response to this kind of energy, we actually ended up liberizing our cab market a lot more before Uber came. And when Uber came here there was no good will for the existing established cab companies, because people considered them borderline mobsters.