sets a dangerous precedent where the government knows better than the markets
Wtf. You could say this about literally any law. Outlawing murder-for-hire sets a dangerous precedent where the government knows better than the markets. Making people pay income tax sets a dangerous precedent where the government knows better than the markets. Speed limits set a dangerous precedent where the government knows better than the markets. What a terrible argument.
Uber Black drivers are commercially licensed in addition to satisfying a bunch of other requirements.