If a business feels like regulations created by the government are not reasonable, it has all the right to decide to stop doing business. Government shouldn't be regulating such things in the first place, but since it does, it surely can't force businesses to continue working under them.
> but it doesn't seem entirely outrageous that the drivers of buses, taxis, and similar transportation services should have them.
It is outrageous. I mean, it's a vehicle. Not a spaceship, for gods sake. This person has licence and good rating in the app? Good enough for me. If it's not good enough for you, don't use Uber. What right do you (or government, for that matter) have to tell other people what to use or not, I really don't know.