The system clearly isn't fulfilling the needs of San Francisco consumers. But that doesn't logically imply that the only answer is to toss the regulations; instead, it could just mean that San Francisco needs to issue several hundred new medallions.
I'm not sure how simply certifying cabs overcomes information asymmetry here. The signal that competes with the certificate is "advertised price", but the whole point of cab regulations is ensuring that customers receive a predictable price and a safe, complete, timely carriage to their destination. Permission to solicit uncertified cab business seems like a license to prey on naive riders. It's clearly not in the state's interest for the market for transportation in the city to devolve that way.
I'm not sure how simply certifying cabs overcomes information asymmetry here. The signal that competes with the certificate is "advertised price", but the whole point of cab regulations is ensuring that customers receive a predictable price and a safe, complete, timely carriage to their destination. Permission to solicit uncertified cab business seems like a license to prey on naive riders. It's clearly not in the state's interest for the market for transportation in the city to devolve that way.