they're not. The fact that they've circumvented the regulations is because the regulations don't necessarily make sense: They don't "cruise" like taxis do, so they cause less traffic congestion. They don't use taximeters, so you don't have a device which needs to be calibrated and checked by the state. In the case of UberX, they own their own cars, so they're less likely to be reckless drivers. They don't require queues like taxis do outside of bars, or even worse, at the airport, where a queue attendant has to be paid to make sure passengers don't accidentally jump the queue. By having a rating system, there is less of a need for enforcement of a 'taxicab bill of rights' which shifts costs of monitoring and handling misbehaving cabbies onto the state, etc.