If college kids on Uber are hurting families who rely on the income of a taxi/cab/whatever driver, why wouldn’t we step in? There’s no golden rule that says we can’t intervene in the market to ensure people can have a decent life.
Desperate people will always try to make a living on any money source. Say I live in an area with lots of litter. If I made a program that paid 5 cents per piece of litter picked up from the streets, some desperate person would try to do it full time to support their family, fail, sue me for not paying a living wage and providing full health benefits and a pension, etc.
College kids should very well be allowed to offer a lower price for a service that someone else does at a higher price point - the problem is a multi-billion-USD-valued company trying to weasel around laws to profit off of both of them.
So a side hustle for bored college kids is undercutting people who need a real job to feed a real family. Hardly an argument in favour of Uber?