When people talk about 'heavy regulation', they don't usually specify what regulations they are actually talking about. In Germany for example, Uber is in trouble because they are not ensuring that their drivers are insured (a normal private car insurance won't cover commercial operation) and not ensuring that the vehicles have the required level of mechanical safety checks (commercial vehicles require more regular tests because they do far more miles).
When you peel away the vague and emotive language of 'heavy regulation' to look at the actual issues then suddenly things look quite different.
Hands up who on HN thinks filling our roads with uninsured drivers is a good thing? Hands up who thinks mandatory checks on vehicles brakes and other basic safety systems is a bad thing? I think I see pg's hand at the back there. But in general the vast vast majority of people think mandatory insurance is a good idea. That's why nearly all developed countries require it by law.
Uber don't want to actually come out and say 'our drivers are not insured', but make no mistake, thats the kind of thing Uber and SV VCs are talking about when they complain about 'red tape' and 'regulation' and 'lack of entrepreneurial spirit'. Ignoring insurance laws makes it easier for them to undercut law abiding and sociably responsible competitors, and they want to continue to get away with it.