New York City's taxi industry deals Uber its first big defeat

Uber's "damn the man" strategy may have backfired. The San Francisco-based startup took a chance when it launched its taxi-hailing service in New York against the wishes of the local Taxi & Limousine Commission, hoping that the regulators would bend — or that customers would love Uber Taxi so much that the TLC would have to give it a pass. The goal was to be the first mover in a hotly-contested new market. However, after just over one month of operation, Uber is now asking taxi drivers to turn in their company-issued iPhones and cease using the app to pick up fares.

Uber is "about to take a very expensive bath," one industry insider told The Verge in an email.