Normally when booking a taxi, the customer must wait at the place specified for the taxi to arrive, but Uber might be planning a way for the driver to track the movement of the customer and arrive at a different destination.
What is not clear is whether Uber drivers will actively move towards the customer, or wait at the pre-assigned location. The former might be actively abused by customers, who decide to go grab a coffee or something to eat while waiting for the taxi.
That said, Uber is popular in most cities and if the customer spends too long or is too far away from the pre-assigned location, the driver should be able to decline the ride and look for another customer in close proximity.
As far as changing the taxi industry, Uber has already done its fair bit, but this new location tracker will allow them to make sure the right customer is picked up and be able to keep tabs on the movement.
Uber drivers are already feeling some of the changes from the regular taxi business, but most tend to be okay with the changes. The flat rate taken by Uber allows drivers to earn more money as long as they are busy, something Uber is keen to provide with its rapidly expanding service.