That language is a little loaded. These aren't taxis. Taxis are cars that sit and take fares from the street. They take up room, add to traffic, etc. This more like requesting a car service, which is pretty common in big cities. Taxi regulation being used to stop it is a sign of corruption, not law enforcement.

I think there are regulatory hurdles to be crossed here, but a wholesale banning of the service is extreme, short-sighted, and anti-business.