Earlier quoted context omitted.
Don't get me wrong; the city medallion systems are evil. I'm just saying they're a necessary evil. If we could replace them with something sane, I'm onboard!
You're quick to dismiss all prospects for a mobile-device-assisted reputation system based on v1; assume instead that it iterates a number of times and eventually chiefly helps the dispatchers identify bad actors, rather than customers. With digital cameras and other low-cost person and location tracking technologies, it's not easy for drivers to take riders on any ride other than that which was contracted, nor for p…
Unfortunately for your argument, while the medallion system does unjustly restrict competition for cab driving jobs in Chicago and NYC, it does not in fact appear to harm consumers. Cabs work in Chicago and NYC. The potential harm of deregulating and devolving controls to unproven technology far outweighs the benefit.