Uber, a location-based limo service, has been excluded from many of the top 20 U.S. cities by local government regulations. See http://eeditionmobile.chicagotribune.com/Olive/Tablet/ChicagoTribune/SharedArticle.aspx?href=CTC%2F2014%2F01%2F06&id=Ar04100. The cab companies it displaces have fought back with new regulations designed to delay service, with lawsuits, and, indeed, with everything except lower prices and better service.
What does this mean for your company’s growth plans? Look at the local, state, and federal licensing and regulatory process obstacles, and put time for compliance into your cash flow plans. Try for market position not prohibited by rules. Plan for enough capital or cash flow to fight competitor lawsuits, once you are large enough to draw fire. Buy a competitor with licenses and cash flow, as one way of managing market entry and local government relations. Audit your regulatory compliance at least annually. Rules often change.