"People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public." - Adam Smith
The cabbies are in on it too. The prices are higher than they would probably be in a truly free market for cab fares, and that situation can be maintained more easily when the incumbents can prevent new competitors from entering the market.
Re: cabs, it seems like the price is plenty high from the perspective of a buyer. The real problem I suspect is that the city limits the number of medallions issued to 1,500 per year. There are people who wait years to get a medallion.
"People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public." - Adam Smith