I think your analysis is correct. It seems likely they will be forced to integrate and become a taxi service dispatch infrastructure provider. It seems a smarter move to accept how "sub-optimal" markets such as these have become and deal with unreality on it's terms than to resist the corruption outright on principal.
They can't integrate -- it's the whole point of the corruption, to maintain a cartel with limited supply, so as to inflate prices and profits. They don't want them to operate "within the rules" -- they want them to not operate, period.
No new taxis in D.C.:
The supply of cabs is limited by a licensing exam for drivers that's been closed since 2010.
