Why is Uber targeted by governments?

Transport for London tried to end operating licenses for Uber drivers but the court has approved licenses for Uber as the judge believed that Uber has made changed to make itself qualified for renewing its licenses. However, the major of London has asked for powers to cap the number of Uber drivers (and other private hire drivers). Meanwhile, New York City seems to take a similar route as London that the government is going to restrict the number of licenses for Uber drivers.

For governments, Uber seems to have lots of negative externalities. These governments believe Uber and other similar companies have created social instability as well as insecurity. Social instability occurs between the traditional taxi drivers and these private hiring drivers, social insecurity is worried by the governments that many of these private hiring drivers are not securely checked for their background. This is such an example that regulators and governments are not fully prepared for new things and technology.

The market is always aware of the newly arrived technology and companies are also trying to develop new technology. It does not mean that governments are sitting over there and doing nothing, governments are also greater inventors and innovators that many technologies are developed or funded by governments; however, the problem is no one is able to predict what new technology is capable of, many things are out of people’s minds. Under such circumstance, governments are always one or more steps lagged behind.