I'm on the ground here in China. Uber's used their tactic of going head-on against government and regulation when they started out here, and it didn't work. I think they underestimated the speed and ferocity of local competitors, and didn't put enough emphasis on the political savvy needed to get popular and government support. They've recently made some well-connected hires and partnered with some powerful allies like their investors here, but they are now playing catchup. I'd also be concerned that their connections are of the mercenary type, and would be less likely to take up Uber's cause at the expense of heightened political risk, if it came down to it.

Edit: grammar

Yeah, political mismanagement can even end in your employees getting hit by Chinese gangsters, your company losing their rent contract and webserver without reasons etc. On the other side, if you have government backing your competitors are no problem because they experience these "accidents".

Even then, if the service is popular it'll be cloned by s national service and Uber will be removed.