Uber is revealing how government is generally a supporter of entrenched interests. Upstarts and competitors are always hated by existing businesses. Under real capitalism there is little an existing business can do other than produce a better good or service at a lower price. When the government has unlimited powers to regulate business however the more powerful existing business can wield the police power of the State to throttle competitors.
Here’s an example from the news: Counsel meeting could limit the number of Uber cars. The stated public purpose is to fight congestion. That reasoning ignores the benefit to people. Of course adding Uber cars to the surface streets of Manhattan increases congestion. It also makes it possible for people to get around conveniently without bringing their own car. Huge parts of Manhattan have no cabs cruising most hours because there is not enough demand. Calling a radio dispatched limo can involve an hour wait. Competition for yellow cabs will make service better. Just the entry of Uber often makes the local cabs cleaner, the local drivers more pleasant and the cars upkeep better.
The taxi industry proposed similar legislation before. Where are the people who commute to Manhattan by car and bus? Are they calling for this type of legislation? How about pedestrians and businesses? Are there concerned committees with broad support?
Thousands of people want to work by providing a service to Manhattan. More thousands want to voluntary exchange their money for an Uber ride. Yet the city counsel wants to prevent this voluntary exchange.