I thought it was because they were avoiding paying taxi taxes and avoiding medallion restrictions. And maybe also because the Uber/Lyft themselves were operating at a loss, and drivers might have been overlooking the money lost due to car depreciation.
I'd guess this consumer-hostile arrangement is maintained via some kind of kickback up the ladder. It's pretty funny to see a long line of empty, desolate taxis sitting right outside the arrival doors, while if you walk 15 minutes to the far side of the terminal where rideshare has been relegated, it's bustling to the point that it's difficult for drivers and passengers to find each other.
So yeah, my view is you can say what you want about rideshare; taxis are far worse.
or VC-subsidized rides, or shifting private costs onto the public, or not paying their drivers a sustainable wage, or this is not typical and you rarely find (I've never seen it) the taxi rate double the Uber rate.
So yeah, must be shadowy cabal between high ranking city administrators and fat-cat taxi drivers.
And in a lot of places, an airport taxi doesn't have a taxi license in the city, so they're largely stuck in that system.
I always loved the randomness of the ride sharing option, the potential extra time before drop-off easily outweighed the potential for an interesting conversation.