This is one of the reasons I think the bar for new laws / regulation should be very high. Clearly, there was a huge pent-up demand that wasn't being served by the existing market participants.
However, by using their regulatory clout, taxi cartels were able to stifle new competitors for decades. (1) That is, until internet technology enabled companies like Uber / Lyft to grow fast enough that they could effectively fight back.
But until that happened, few knew how much harm was being caused by the regulations.
(1) http://www.latimes.com/opinion/op-ed/la-oe-mitchell-jitneys-uber-ride-share-20140713-story.html
However, by using their regulatory clout, taxi cartels were able to stifle new competitors for decades. (1) That is, until internet technology enabled companies like Uber / Lyft to grow fast enough that they could effectively fight back.
But until that happened, few knew how much harm was being caused by the regulations.
(1) http://www.latimes.com/opinion/op-ed/la-oe-mitchell-jitneys-uber-ride-share-20140713-story.html