I remember back in 1985 seeing black conservative Walter Williams speak at Ohio University. Although most of us students totally disagreed with him when he spoke about the minimum wage (he was not for it of course) he mentioned how poor people were actually hurt by the way the local city governments held a monopoly over just what company could provide cabs and who could drive a cab legally. In short city governments keep the number set at a certain amount and charge thousands of dollars for the medallion (or permit to taxi people) that cab drivers display on their cars. If you are a gypsy cab and get caught you face penalties. Williams was suggesting there should be no law against letting poor people charge money to give people rides.
So that is basically what Uber is doing. I have to say that in this case I find the universal monopoly of cab services sort of distasteful but it appears to be worldwide. In Paris they do this, and in my wife's country they do for the jeepneys and the motorcycle side-car taxis, or trikes.
Here is a good article about LA:
http://www.latimes.com/local/califor...120-story.html