? The argument is that there are reasons other than inflating prices to regulate the number of taxis on the road. Cars have externalities that society as a whole pays for, it's reasonable to limit those externalities.
But with limiting taxis you increase the amount of cars on the streets, aren't you? People probably won't stop traveling because there are no free taxis. They jump in their own car.
Not in the cities where I live. They generally park in specific hubs made for them by city planners in front of strategic places like train stations, hotels etc.
It's Germany though..