Comment by mattzito

I think you have to go market by market to make that statement. In NYC, for example, it was explicitly illegal for yellow cabs to accept radio/pickup calls, which was the domain of the livery cabs (black cars). The tradeoff was that only yellow cabs could do street hails. That worked for everybody for years - yellow cabs did a volume business, livery cabs were for outer boros or luxury/business travel and would sneakily try to pick up street hails.

In those days if you needed a car to take you someplace, aside from the outer boro examples, it was always faster to get a yellow cab. The car services could maybe get there in 45 minutes if you were lucky - big companies would often have deals with car service companies to have a few cars stationed at their buildings for peak times, so execs didn't have to wait for a car.

The yellow cab operators were essentially all independent - many rented their medallion/vehicle, either from a colleague or an agency, but they worked their own schedules and their own instincts on where to be picking up fares at given times.

No one expected something like uber - what is essentially a street hail masquerading as a livery cab. This basically destroyed yellow cabs and the traditional livery cab companies, but some of it is attributable to the VC spend, lowering prices (yellow cab fares are set by the city, livery cab fares are market-regulated) and incentivizing drivers. They made it so lucrative to drive an uber that you had thousands of new uber drivers on the road, or taxi drivers who stopped leasing their medallions and started driving uber.

At some point, though - the subsidies dried up, prices went up, and now its often faster to get a yellow cab than an uber/lyft. This is anecdata, but I take cabs a lot, and I've spoken with ~6 taxi drivers in the last year who either started with driving uber and shifted to driving a taxi, or went taxi-uber-taxi. Then I've had a lot more taxi drivers where they need passengers to put the destination into the driver's waze or google maps, even for simple things like intersections - I suspect they're uber drivers who became depedent on the in-app directions and native language interactions.

But the broader point I'm making is that in NYC, the drivers themselves were essentially unable to do anything about the changing market. The only power they had was to shift between the type of fares they were getting. And today when you order an uber, sometimes you get a yellow cab.