Yep, the good old legal requirements. Reminds me of Michigan's Republican Governor Snyder signing a bill to prevent independent real estate agents from having their picture on for sale signs placed in front of houses.
Just a "legal requirement".
Need I spell it out?
If a jurisdiction has no legal requirements to operate a can company, then so be it. If a jurisdiction has a whole pile of them, then they should all meet the same standards. It's really that simple. Uber has built its business around loopholes in laws and other regulations like insurance requirements, and as those things get addressed they're having a harder and harder time running their business profitably.
Airbnb is the next one that is going to fade from the scene -- and for the same reasons.
P.S. -- Uber is a huge fan of strict legal requirements, when they want to use them to the company's advantage. Uber cut a deal with the New York City Taxi & Limousine Commission to meet the TLC's requirements for a cab/limousine company. Now Uber is a partner with the TLC in a legal battle to get Lyft out of the market.