i.e. sell all their medallions, get rid of all their regulations and expense overhead, and just operate all their drivers like Uber operate theirs. At which point competing should be easy enough.
I think we're at a very interesting point in the Developed world - in the 80s, 90s and 00s everything about our society became more and more regulated and safety conscious (hotels, taxis, health care, education) meaning costs skyrocketed, and the cost of entry to compete in those markets became astronomical.
Now we're using technology to go back to way things used to be - less regulation, less rules, (arguably) less safety. Spend some time in the Developing world and you'll see their society still works like this - people will let you stay in their house for a few bucks a night (airbnb), people buy minivans then drive around picking people up for a fee (uber), etc. etc.
It's interesting we had to use technology to go back to the way things used to be in these areas.
I'm looking forward to seeing the uber/airbnb equivalent for education, healthcare, energy, etc.