Well they pay for licenses, training, insurance and fee to the agency. No wonder they are frustrated that Uber drivers under banner of "hacking industry" avoid those laws and manage to charge customers less as their cost of running is mostly their time + petrol. Nothing explains behavior like that, but for sure Uber is last company to feel sorry for.
Uber's drivers also pay for licenses, insurance and fee, also, they pay their taxes; in every one of their rides a tax-deductable receipt is made and sent automatically to your email. Just try that with the taxi.
Also, the cars are better, the people are nicer, you don't have to carry cash to pay, and the fees are better. Here in Mexico the illegal taxis (pirate taxis) are a very serious crime. The government wouldn't have let Uber entering if they thought it would be like the illegal taxis. So, it's not as it's a dude with a car and that's it. It's regularized.