[promoted by the industry itself]
Source?  The current proposition doesn't involve control by voters or by the industry.  I'm sure that proponents of the proposal couldn't be basing their opposition to increased permits because they believe the issuance of more permits won't fix anything and likely to cause more problems, ie. more permits is not going to create more competition as it will not increase demand or provide for alternative services like Uber/Lyft.
Here's more, likely inconvenient, information.  Current TI provided information a few months ago that stated there is already more supply than demand based upon 70% usage of permits.