Anything's a net loss if you choose the scope arbitrarily. It's not just two guys losing money. It's also the customers saving money and getting better service.

If you see a taxi company as some kind of employer of last resort or an unemployment benefit without the shame, then perhaps it's a net loss, but why not just call a benefit a benefit and hand out cash to un/underemployed people. If you have to take a pound of flesh to prevent abuse, then have them break rocks or something to earn their payments.