[novok]

They're expensive because supply is explicitly limited by a license limit and the taxi license holders extract monopoly rents. On top of that they are often in cahoots with local politicians and form a symbolic relationships where politicians limit their competition in exchange for political support, with organized crime connections that are too petty for most federal investigators to take notice.

Actual taxi drivers are paid shit too. Often have to pay something like $3000/month to rent the license & car from the actual license owner as independent contractors, at the end of the month you end up with Uber-esque pay anyway.

Talk to a taxi driver and ask them how it actually works, it might surprise you.