On the subject of medallions, last I heard that was a point of contention. Uber has been operating without them, and taxi companies don't like that. You play by the rules and pay a huge lump sum to be allowed to operate, and then some guy comes along and undercuts you because HE doesn't have to pay that lump sum? You wouldn't like that either.

Medallions required to pick people up on the street. Über is classified as a limo -- pre booked, no curbside pickup. Los dint need medallions.

However, the structure was created for old style limos: I.e. fat cat or prom kid books for hours, days in advance, not competitive with a taxi.

One could reasonably argue booking an uber 1 minute before pickup for a ten minute ride is a lot more like a taxi than a limo.

Exactly. Uber is following the letter of the law, but the argument can be made (not unconvincingly I might add) that they really aren't following the spirit.

Note I am not criticizing Uber, as they clearly are obeying the law! But to some it looks like they are skirting it, benefiting from a loophole.

The argument can be made that the law is bullshit.

Either way uber has a serious competitive advantage over taxis.

Many of the Uber cars are also luxury towncars, for which fuel, upkeep and maintenance can be a large cost. Especially if you consider how much they are driven in a given year.

The costs of operating a taxi depends very much on the location. Assuming a US centric view:

- permit (medallion, whatever)

- labour

- write-off on the taxi

- taxes

- fuel, tires

- insurance

- inspection

- credit card processing fees

Top all of that off with a healthy profit otherwise your taxi operator goes out of business quickly.

All of these to a greater or lesser extent contribute to the costs and result in a price-per distance unit (mile/km) driven and a wait tarif.

Taxis have considerable down-time between jobs so utilization is a factor as well.