How so? I mean, I'd rather avoid either, but if I had to pick one, I don't get what's so special about "startups" that they're more important than data security.
In this particular case, I have no idea whether or not the safety risks/externalities are severe enough that added regulation is needed.
(No. They can ride in a freelancer driven taxi is not raising the standard of living.)
But there need to be boundaries, because not every business model is good for society. As a thought experiment for those thinking it's better to have deregulated startups in high-tech industry, imagine taking down biosafety regulations. Think of all the biotech startups blooming...