Usually states make laws in good faith to solve real or perceived problems like unsafe taxis and unfit drivers. Then those who get through the process lobby to

Usually states make laws in good faith to solve real or perceived problems like unsafe taxis and unfit drivers. Then those who get through the process lobby to raise the barriers higher to protect their 'investment' in the process and reduce competition. Lobbyists are experts at regulatory capture; they might have previously had a government job and by close friends with regulators / legislators, they might fund the campaigns of those in power, and they are willing to spend real money - far more than the other side usually - to tell their side of the story. Uber is a single company that is most likely globally bigger than most of the taxi cartels - so when they are on the outside trying to get in, they are the first time there has been significant lobbying for less regulation.