There shouldn't be incentives for drivers to go into the taxi business other than the market. Taxi rates should not be regulated, supply and demand ought to be enough. What broke the market was the extremely expensive medallion racket. They don't limit hairdresser licenses or medical licenses, why taxi medallions? It's a highly distorted market often controlled by highly corrupt mob related interests. How is that a good idea? The free market is surprisingly efficient when not encumbered by Byzantine attempts to regulate everything.