[vesinisa]

Similar situation in my (another EU) country. Uber does not check and enforce that their drivers are actually licensed cab drivers (perhaps not strictly illegal on the company's part but very questionable) and helps their drivers in illegally avoiding tax on their salary (perhaps not strictly illegal on the company's part but very questionable.) And despite all these shady practices its black market ride is often only slightly cheaper than a real, licensed cab!

Why we have licensed cabs is because the country is very sparsely populated. The taxi license is specific for a certain area and the driver must service mainly that area. This lets the officials haggle with the private taxi companies and thus guarantee taxi service to all areas. Essentially, riding in the city subsidizes riding in the countryside. Whether this system is changed is a local domestic political decision. Until then I wouldn't condemn the licensed taxi operators suing Uber here.

Though Uber has had one positive impact: the taxi unions now advertise how safe the "real taxis" are compared to illegal rides and have tightened the checks on their already strict quality standards on proper customer service, vehicle cleanliness, driver clothing etc.