It might have something to do with taxi drivers specifically since they're not known for being the most honest and decent service providers. Whether it's scams like letting air out of their tires, not starting the meter or taking longer routes or discriminatory practices like avoiding certain neighborhoods and driving by minorities to pick up white people (yes, this is a thing and a friend and I had it happen reliably enough that it became a running joke), the pre-Uber cab situation was pretty bad and there wasn't much riders could do about it. I admit to some schadenfreude at seeing taxi drivers struggle after so many years of putting up with their BS.

OK, probably because I live in Germany where taxis work fine my perspective is different.

But taxi companies have regulatory capture. How are giant VC funded companies dumping service into the market below cost supposed to compete with that?

This whole problem exists not because taxis didn't embrace technology soon enough, but because in 1936 they put a cap on issuing new medallions in NYC. Which meant that since then, irrespective of the economic growth and the number of people, the number of taxi cabs became severely restricted. This created an artificially increased prices for taxies. In the year 2011 a taxi cab medallion was sold for $1 Million in 2011 [1].

Taxi Cab industry is a heavily regulated industry which was screwing only one group of people, i.e. the consumers. This is why there is little love for the cab industry in America. For more economic analysis on this, check out the lecture by Murray Rothbard given in 1989 at NY Polytechnic [2].

1. https://cityroom.blogs.nytimes.com/2011/10/20/2-taxi-medalli...

2. https://mises.org/sites/default/files/Government%20Cartels%2... [Part about taxi cab medallions start from 29:21]

> Frankly, I don't get it why so many people in tech are so biased against smaller independent businesses such as taxis and mom-and-pop shops

As a tech person I'm not against smaller independent businesses. I actually support them as much as I can. However, I also support convenience. Smaller businesses should strive for convenience, and tech businesses should consider supporting and enable those smaller mom-and-pop shops to flourish. Lyft and Uber are, in fact, doing exactly this, by solving a transportation problem for a lot of smaller guys. Like me. I save a lot of personal money because I can get around on-demand and don't need to own a car. (I rent for longer trips, and the amount I spend on Uber+Lyft+Enterprise+Zipcar is much less than the cost of car ownership.)

Taxis are very, very far from your innocent mom-and-pop shop. I'd be quite glad if they die. For the following reasons.

- Taxis regularly rip you off when they drive by meter (I say this from experience). Uber drivers don't. Seeing the car on a map with your destination and route gives me peace of mind.

- Being able to set the destination on your "taxi"'s GPS navigation system using your own phone is amazing. You can just click on addresses in your calendar events and get a car without having to spell out street names for taxi drivers. It also helps a LOT when you are in a foreign country to be able to just click on stuff and physically get there, no questions asked.

- Taxis don't have a carpooling system. As a customer, I want lower fares and lower carbon emissions. In fact I bike most of the time and seldom drive a car because I don't believe in 1 person per car as a sustainable form of transportation. Taxis don't solve that problem. UberPool and Lyft Line are taking a step forward here. It's a step toward Public Transportation 2.0, the way I see it.

- Not all taxi drivers take credit cards. Especially outside the US. Uber solves the payment problem in a lot of parts of the world.

- In about 95% of places where I use Uber/Lyft, taxis don't really run around on a regular basis. You have to find their weird phone numbers, find a phone, and call them. And sometimes they don't show up for 45 minutes. Having a system that tells drivers where people want rides is a lot more fuel- and time-efficient than taxi drivers trolling around looking for business. (Guess why taxis are more expensive!)

- ONE app to get you a car on-demand, in any country, anywhere. How cool is that?

I have multiple personal stories in which cabbies and cab companies (based in San Francisco and Austin, TX) colluded to defraud me out of hundreds and hundreds of dollars. I have told these stories too many times to get any catharsis out of repeating them here — but I am confident, and experience confirms, that similar scenarios would never play out with Lyft or Uber. An individual driver may be a cheat, not for long, and without Lyft/Uber covering for them (unlike Yellow Cab)

I am sure there are regions where taxi companies don’t completely suck. My very limited experiences w/ cabs in the South of France was markedly better than with taxis in Texas and San Francisco, for example.

I am very supportive of small business. And dislike large corporations. And surely believe that large corporations are behind many regulations that makes small business bankrupt. They buy favors and pass laws favoring their stance. Government offers their service with a fee, they buy it. But, taxi business is by large enter to this territory. Entering business is very hard with historical or meaningless reasons. I do believe there will be independent taxi drivers using intelligent services that behaves differently than Uber. That of course may change when autonomous cars take over.