Why cap taxi medallions?

Yet another piece on how occupational licensing makes no sense and injures consumers instead of protecting them - which is what occupational licensing is declared to be doing to justify its existence.

It is reported that the cost of a taxi medallion in New York City (a right to operate a taxi business, one car) has dropped over the latest 4 years from the whopping $1.3 million per medallion to "just" $241,000 in March this year.

I wonder, of course, whether the drop in the cost was because of the Trump administration's efforts to corral illegal immigrants - who were most likely used as drivers by the wealthy owners of such medallions.

But, the question is - WHY, given that the declared purpose of occupational licensing (including taxi licensing) is PROTECTION OF CONSUMERS, would New York City CAP the number of taxi permits (medallions) in a multi-million city of residents, with more millions of people coming every day as tourists and to do business in New York City - to the meager 13,587?

It does not seem like protection of consumers, does it?

It seems like restricting competition to the existing taxi owners from potentially incoming competitors in order to keep supply of taxi services low and prices high.

Right?

Of course, everybody knows that the actual taxi drivers are often new immigrants (legal and illegal) whose command of the English language is limited and for whom driving a taxi may be the only way to earn a living.

These people most definitely cannot pay either $1.3 or $241,000 per "taxi medallion", so they have to work for richer people who do not driver that car, but who exploit these immigrants.

New York City, the self-proclaimed "sanctuary city", is supposed to be friendly to immigrants.  Right?

Then, how come that it not only allows, but promotes and establishes cruel exploitation of immigrants by taxi barons?

Why not reduce of taxi licensing to checkup on the car and checkup on the driver (background check and knowledge of the city)?

After all, that's all that is needed to establish safety and quality of service for consumers?

And why not cancel any caps on taxi medallions?