[timv]

The justification for it (which I agree with, but YMMV) is that the government has regulated the Taxi industry for a long time and artificially constrained supply by limiting the number of Taxi licenses.

Since it was a player in the market, and its actions had an affect on the price of those "investments" it has decided that it has a part to play in helping the market adjust to the new regulatory framework.

If this was simply a case of foreseeable market changes coming along and disrupting the established players, then the government should just stay out of it. But this is regulatory change and the government has to at least accept that it is involved in, and a facilitator of, the disruption that's occurring.