They are a taxi comapny and should follow the law just like anybody else.
The question is whether those laws are just. On the other hand, Uber was providing additional insurance while the user was transporting a rider; all they would have had to do was comply with the rule saying that the insurance would be provided any time the app was active, and then also make it so that it was against their rules to activate the app for any purpose other than carrying fares so that people wouldn't be activating the app just to get free car insurance. Get it written into the policy, in fact, so that it's the rules of the insurer and not just Uber, so that the policy will stick. Then it becomes the driver's responsibility not to break the rules.
Instead, they pulled out of the market completely and threw a tantrum.
I still don't believe that you should have to have a taxi license to charge someone for a trip. They don't do what they are claimed to do, they are simply a means of grabbing cash and exerting control. If you want people to have to have a certain grade of insurance first, that's fine, but there should be literally no other restrictions. If you think vehicles need safety inspections, there's no reason whatsoever to restrict that to taxis. It should be for all vehicles or for no vehicles.