It will be a while before Uber actually stop operating, I think a compromise will be found personally. I mean Uber's prices would have been risen eventually - their business model is to operate at a loss to undercut the competition (who aren't backed by venture capital) until the competition is gone at which point they would have a stranglehold.
I do use Uber, find them useful and so cheap, but I do feel conflicted about the way they operate as a business.
I mean there is a touch of arrogance from them about this. The conditions aren't unfair. Have your drivers pass CRB checks, be better and faster in reporting serious allegations in your vehicles and don't use the special software they have to avoid inspectors (
they literally have this). Meet those conditions, applied to all other drivers that require a taxi licence, and they can operate.
I should also say that the best thing about Uber is a sense of safety when you're in a foreign city. You know you won't get screwed.