That’s Uber propaganda. The system was created because prior to that cities had traffic jams with a ton of freelance cabs with no quality controls or regulation. The medallion system set a price floor and mandated inspections and insurance and background checks. Uber bypassed all of that for years and surprise; women were being assaulted by drivers with criminal history, passengers were injured from uninspected vehicles and couldn’t get remedied because the drivers were uninsured, and cities have worsening traffic jams because there was no limit on Uber drivers choking downtown streets.

The taxi industry evolved this way for good reasons. Uber was initially sold as good for immigrants and now immigrants protest how that company gets special treatment over every other cab company and hurts their bottom line.