Taxi companies don't necessarily hire employees. The whole medallion controversy in NYC was that the market value of the medallion had outpaced the rent the tax

Taxi companies don't necessarily hire employees. The whole medallion controversy in NYC was that the market value of the medallion had outpaced the rent the taxi owner could charge the driver for that shift. * U&L don't own the cars, so they don't need to enforce a price floor to stay n business. If the drivers in one city saturate the market and driving becomes unprofitable, U&L lose some rev-share, but no capital investments. * Taxi companies are required to disclose their costs on the outside of their car (in most jurisdictions), meaning it can't change often like U&L's dynamic pricing and it also acts as a price floor where U&L don't have one. * Also, U&L can hire more drivers than the fixed number of taxis in any jurisdiction defined by the government, thus moving the city higher on the supply curve and driving down the cost below what taxi companies need to cover their expenses.