Even good regulation creates inflexibility. It's just a cost. It takes into account the way things are now and makes it difficult to allow new business models to develop. It makes it difficult for companies to operate in multiple regulatory regions. They can lock in revenue streams and/or profit margins for companies, drivers or taxmen.
Uber's a new player threatening income streams. That will rattle cages. But they are also a global company and an innovative^ one. Being innovative means they clash with existing rules and policies by not fitting into existing classifications. Being multi-regional means they have a hard time being flexible themselves. They want to be able to drop in their system in every city they operate in.
They want to represent themselves as on a collision course with bad/corrupt regulation. But, they are really on an unavoidable collision course with all taxi regulators everywhere.