> No, they weren't. Taxi companies operated legally. Uber routinely broke the law.
No, they didn't. At least, not in most US cities - I don't know how the laws work abroad. All a taxi medallion does is allow you to accept rides from people that hail you from the street. That's it. Limo companies and vans that you scheduled beforehand did not need medallions. There's functionally not much different from the service Uber provides and existing charter services, except for the fact that Uber used technology to make scheduling rides much faster.
The "Taxi Mafia" very much existed, though calling it a cartel is probably more accurate. Governments deliberately constrained the supply of taxis through medallions. Naturally, this resulted in inflated prices and poor service due to lack of competition. There's a reason why many people have little sympathy for the taxi industry's struggles to compete with ride sharing: taxis sucked.