I agree the medallion system is stupid, however the reason for them to exist makes sense. They are used to control the supply of Taxis so streets aren't flooded

I agree the medallion system is stupid, however the reason for them to exist makes sense. They are used to control the supply of Taxis so streets aren't flooded, however cities should be auctioning the licenses rather than selling off one-time rights. If that were the case Taxi startups like Uber may have started their business with compliance by simply bidding for licenses (in theory if they operate more efficiently they could outbid), but instead because of the rent-seeking medallion system a 1.1 million dollar medallion per car would simply be prohibitive to new entrants.