The cost of a New York taxi medallion is many hundreds of thousands of dollars, some even sold for a million. This market distortion is paid for by the fares. Is the cut that Uber takes more than the cost of that medallion? I doubt it. Uber is attacking the artificial government barriers to entry the same way Henry Ford attacked the buggy whip industry - with competition.
Competition is a good thing overall. Either the problems listed in the article will be ironed out, or some other innovation will arise. Monopolies can’t last forever.