The law of supply and demand takes a pretty big hit when arbitrary decisions are made. As long as the meter in the cab is a fixed number, it will cost the same to get from point A to point B no matter how many cabs there are.

No matter how many cabs there are, if you get in one you pay these rates. https://www.numbeo.com/taxi-fare/in/Anchorage  1 cab, a million cabs, same charge. The Muni decides how much a cab can make when at 100% capacity. Each cab on the road takes a split of the available revenue. They DO NOT charge less because there are more cabs. 

Again, Muni regulations hold the cost where they are, not the cabs, not competition, not the free market. Because they do not operate in a free market.