There's at least one reason why it shouldn't be outlawed (well, apart from mundane things like justice, freedom and this kind of crap which is not very relevant

There's at least one reason why it shouldn't be outlawed (well, apart from mundane things like justice, freedom and this kind of crap which is not very relevant anymore): if it's outlawed, we will never know if the model they offer is indeed better or not than the current one. If the taxi drivers believe what they say (more safety, etc.) they don't need to ban their competitors because truth will eventually emerge.