The reason so much disruption comes from "barely skirting the law" is because government sets up the law/regulation to entrench these old business models. So much of what the US government does today is in service of big business, not necessarily adhering to whatever moral standard you have in mind for the rule of law.
Uber has to use the gray areas precisely because regulation was set up to prevent disruption of the cab industry. This regulation inhibits growth and promotes stagnation, evidenced by the fact that NYC cabs did not accept credit cards until 2007 and by how obviously under-served the SF cab market was.
Uber, by skirting the laws that were not serving the consumer but rather entrenching an industry has been able to do more in five years than the entire taxi industry has in 50.
I think you have the chicken and egg backwards. Issues with quality and service are what formed regulation in the first place. Regulation exists to fix a problem; look at the history of transportation, and the current state of 3rd world country transportation.
Cabs were dangerous and took advantage of people before regulation, much as 3rd world country cabs do today.
Your argument is not persuasive and is very short-sighted in terms of history.
And to take it one more step: Lead-uber, by skirting the laws that were not serving the consumer but rather entrenching an industry has been able to do more in five years than the entire lead mining industry has in 50.
Does that make you feel comfortable about 'disruption'? What makes mass transportation any different?
I may be wrong, but I doubt the initial laws were setup to protect the cab industry. It solved a problem of safety, reliability, and set prices with cabs. See third world countries where a cab ride can easily mean a kidnapping or robbery at worst, or a fleecing at best. I'm sure once the basic infrastructure was in place cab companies used their lobbies to further entrench, but the basic laws are there for consumer protection.
Uber has to use the gray areas precisely because regulation was set up to prevent disruption of the cab industry. This regulation inhibits growth and promotes stagnation, evidenced by the fact that NYC cabs did not accept credit cards until 2007 and by how obviously under-served the SF cab market was.
Uber, by skirting the laws that were not serving the consumer but rather entrenching an industry has been able to do more in five years than the entire taxi industry has in 50.