Here is food for thought: why were taxi medallions worth up to $1M in New York City?
That's the expected profit from operating a single cab. (Net present value of the expected profit, with much coming from the government enforced scarcity.) And it sucks all of the profit out of the system, as most operating revenue goes to paying financing for the medallion.
There were several evil side-effects of the system. The high price of a medallion means that it needs to used to its fullest, which means that the cab is put on the street as long as possible. It means that medallion owner is rarely the driver. Instead it is (was) the goal for drivers, where they were hoping that after 20 years they could buy one and be the boss, and have it as their retirement investment.
Uber rides are often a better deal for Uber than the drivers, but it's better than the medallion systems.