Earlier quoted context omitted.
Nope, the medallion systems exist to block new competition. Sure there are some regulations that seem to favor consumers-- such as price controls-- but these are a short-term benefit, and at the cost of reduced innovation. Far better to allow competition, and customer service will improve through market action rather than government rule-making.
"customer service will improve through market action" Ever been somewhere where taxis appear to be completely unregulated? It can be a scary nightmare. Why not enforce regulations on vehicle safety, accurate and fair charging and driver safety and remove the artificial restrictions on the number of people competing in the market? A lot of places outside of the US go with that approach and it can work pretty well.
I work in Chicago and have a condo in the Near West area (basically Ashland and Madison). Cabbies who are already in the area love seeing me hail them for a downtown trip because they earn a few dollars driving where they would have gone anyway without a paying customer. If the industry was un-regulated, I might consider competing with Uber by offering people with less money than time a way to get an inexpensive cab ride from one of these "backhaul" areas. Imagine an Uber-esque service where a senior citizen who wanted to go to the grocery store sometime in the next hour but only wanted to pay $3 for her trip could place a bid for a pick-up. Cabbies who dropped off a premium customer nearby could at least pay for their fuel to reposition themselves for the next premium customer. Everyone wins. It's this sort of innovation which is stifled by laws deemed to be in the best interest of consumers.