Is that really a thing outside of NYC? Pretty sure it isn't.
When Seattle built the Link light rail system, it stopped 1 mile shy of the airport because the taxi drivers didn't want the competition. Fortunately public outcry shut that down, but it's pretty rare that the general public gets upset enough about an issue to overcome the power of a specific interest group (yes, this includes Uber as well!)
There's plenty of literature to explain why price fixing and limiting supply/licensure is bad. There's no competition, no incentive to improve or provide a premium service. There's no reason to provide service in far-out areas where it might be hard to find a return fare. There's no reason to provide service in less "desirable" (read: minority) areas.
Of course, there are problems with the Uber model, too: Surge pricing being one of them. Some people think it's gouging, some think it's the right solution to provide supply for excess demand.
Why is it always left out that a limited number of taxis is good for society as well? Taxis operate on public roads, pollute public air, cause traffic congestion the public must deal with, cause car accidents and hit pedestrians. When you're not catching a ride taxis (and Ubers) are a nuisance and society has decided to limit their negative side effects.
They where a monopoly, and they acted like it, and now they aren't.
I had to take a cab home from the airport a few weeks ago because my phone was dead. Not only did it cost almost twice as much as an uber would have, but the cab smelled terrible, the driver didn't know where we were going, and when we got to my house, I had to wait for five minutes while he literally made a carbon imprint of my credit card.
Uber has a bunch of, yes, unpaid (in fact negatively paid!) cheerleaders because it's offering a service that people really like.
Using modern tech for summoning, paying, and rating cabs is a great idea though.
Maybe some Uber supporters take "don't let perfect be the enemy of good" to heart. Uber does a lot wrong, and there are a lot of reasons to dislike them, but there are also reasons to cheer their success -- if not some of their methods.
What would give you the idea that they are not paid?