You're missing the key regulation these services are trying to do an end-run around: an artificial cap on the number of taxi licenses allowed in these cities. Nothing to do with safety, just an officially-sanctioned cartel.
Compliance with all existing regulations would in many jurisdictions require the purchase of existing taxi drivers' medallions (or the equivalent) at exorbitant rates - and not one extra cab would be allowed on the street after that transfer is complete.
You're making it sound like regulatory compliance for Uber and Lyft is as simple as ensuring that their drivers are competent and providing some means of recompense for wronged customers. That simply isn't true.
Compliance with all existing regulations would in many jurisdictions require the purchase of existing taxi drivers' medallions (or the equivalent) at exorbitant rates - and not one extra cab would be allowed on the street after that transfer is complete.
You're making it sound like regulatory compliance for Uber and Lyft is as simple as ensuring that their drivers are competent and providing some means of recompense for wronged customers. That simply isn't true.