I think the reason that you see this, especially in areas like NYC, has to do with the medallion system.
I think less than 3% of NYC taxi drivers own their license, they rent the license/medallion as well as the car from a large company. Each medallion generates about 95k in annual revenue, and the driver sees about half of that.
There is no incentive for a taxi driver to drive a nice car, or to invest in the 'experience' in any way. Legally, you cannot be a taxi without them. A medallion costs somewhere between 800,000 and 1,000,000
Medallions are owned by investment companies now, as stable and reliable income generation devices. These companies have invested tremendous amounts of money in ensuring their rent-seeking behavior is legally protected.
