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I think your analysis is correct. It seems likely they will be forced to integrate and become a taxi service dispatch infrastructure provider. It seems a smarter move to accept how "sub-optimal" markets such as these have become and deal with unreality on it's terms than to resist the corruption outright on principal.

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They can't integrate -- it's the whole point of the corruption, to maintain a cartel with limited supply, so as to inflate prices and profits. They don't want them to operate "within the rules" -- they want them to not operate, period.

No new taxis in D.C.:

The supply of cabs is limited by a licensing exam for drivers that's been closed since 2010.

http://reason.com/blog/2011/12/22/the-medallion-bill-is-back...

From an article about D.C.'s plans to establish explicit supply caps (quotas), like the ones already in place in NYC, SF, etc.

TaxiMagic seems to be operating without any government interference, by integrating with the existing taxi services.

They can integrate if they can make a successful bid to join the cartels or gain significant leverage with the uber-cartels ( governmental entities ).

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