I'm not at all surprised to hear someone point out that London is more expensive than San Francisco. I am shocked to hear someone from London say that San Francisco has better cab service.
I think his version of "better cab service" is different than yours. You think of better cab service as being able to walk outside and immediately catch one. He thinks of better cab service as easily summoning one from his smartphone. (Seems like a very SF-esque solution to the problem, no?)
Well, I also live in the Mission next to Valencia, where it is ludicrously easy to catch a cab, though I appreciate that it's impossible to catch them in, e.g., Sunset, so I didn't mention it as an advantage.
Of course, in London you literally can't catch a black cab outside of the center (they're not even allowed to do so past a certain radius) so you have to call a minicab. So SF still wins.
London is so well integrated that there's little reason to use a taxi. That's why you have to call to book one, because most people use them for unusual trips, such as going to the airport with a lot of luggage, attending an event with formal wear etc. Much cheaper and quicker to use the tube.