I agree with the economic analysis. Perhaps what Uber will accomplish is to make consumers and city politicians unwilling to keep accepting the archaic system of restricting the number of taxi licences. This benefits a few taxi company owners and turns drivers into sharecroppers while the public waits in the rain. 

If we don't restrict the number of restaurants or grocery stores, why do we restrict the number of taxis? Oh yeah, it's all about public safety. Like there's no public health risk with restaurants.