Vancouver has called Uber exactly what it is: a limousine service. There is no ifs, ands, or buts. The fact that they are able to masquerade in other regions as they please because of the perceived benefit to consumers does not negate the fact of what they really are.
This co-opting of the 'sharing economy' to mean unregulated subcontractors is ridiculous. It removes the risk from Uber as a company and places it on the clients and the drivers. Vancouver (and BC) has determined this a risk to great.
If Uber wants to operate in this jurisdiction, they must play by the rules of that jurisdiction. If they refuse, then so be it. They certainly aren't losing money because of it, just losing OUT on it.