Cities therefore have a powerful interest in making sure that whatever else happens, there is a strata of taxi service available to all residents of the city at some predictable rate.
Limiting the supply of taxes reduces the likelihood that this will occur.
Not that NY has anything like the "universal service" you are hinting at, taxes rarely go above 125th st.
https://news.ycombinator.com/item?id=1650659
Cities therefore have a powerful interest in making sure that whatever else happens, there is a strata of taxi service available to all residents of the city at some predictable rate.
Limiting the supply of taxes reduces the likelihood that this will occur.
Not that NY has anything like the "universal service" you are hinting at, taxes rarely go above 125th st.