I highly doubt it. And even if it’s true, there is no reason for city mandated taxis anymore.

There are multiple reasons, from regulation in terms of insurance, safety requirements, etc. to control of congestion and pollution by limiting the number of drivers.

Which works perfectly when you fly to a new city and need a ride out of the airport, right?

I know right, it's as difficult as going on the app store and typing "<city> taxi app"