What there is to argue is that there are industries where regulation serves no purpose other than to stifle competition, and there are industries where regulation serves the purpose of actually protecting people.
Taxi licensing is an example of the latter.
And in general, as much as HN loves the narrative of "plucky disruptive hackers vs. evil entrenched interests", it is fundamentally not right for a company to "disrupt" by skirting laws and regulations that competitors are required to obey. It is also unsurprising that competitors raise an unholy stink when that happens, and you would do exactly the same if placed in that situation.