Its crazy. I for one can't wait until the taxi mob is competed off the market. Taxi drivers here are more often than not complete a-holes that try to scam you every chance they get. I for one welcome uber with open arms. I'm sorry for the nice taxi drivers but your business is deeply ill.
I agree that the taxi market is ripe for disruption, but this is only fair if other taxis are not bound by that law as well.
Another question is if we want complete deregulation. E.g. I would personally want to be sure that the driver has proper insurance, etc.
(In fact, the mandatory car insurance here even covers personal damages of third parties at fault if they are pedestrians or are riding a bicycle; i.e. if a bicyclist runs a red light and collides with a car and hurts himself, the care cost is carried by the car's insurance. If the bicyclist hits a tree, the tree has no insurance... this applies to personal injuries only, not the broken bike. Any damage to the car is covered by the bicyclist's insurance if any.)
That's just here, of course, different countries have different rules. I don't know those in Germany so well.
Externalizing costs and all that...