I think they did it wrong by trying to maintain too much control over the drivers. Either that or people and/or their political representatives just aren't that interested in ride-sharing. But I doubt that, because as someone who is currently unable to drive, I know what a valuable lifeline these services can be. Fortunately I don't live in California.

EDIT: Also there's a problem with the way resources get allocated. I think that platforms of this type provide a valuable service, but not necessarily one that should be considered the basis for a billion dollar business. The majority of the revenue should be going to the drivers. But it's hard to get capital for something that has no chance of creating a few more billionaires.