Uber has finally paid heed to warnings from California authorities. The company announced that it is halting its trial for self-driving cars in the state. The trials began a week ago. Uber has now moved its fleet of self-driving vehicles to Phoenix, Arizona.

The biggest hurdle Uber faced in California was the insistence of that authorities that the company must get appropriate permits. The company refused to comply with the order as an "issue of principle." The California department of motor vehicles retaliated by revoking the registration of the 16 Uber self-driving cars.

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Uber insisted that the state regulations apply to autonomous vehicles, which its self-driving cars are not. The company claims that the definition is not applicable to its vehicles.

The agency had stated that: "California's testing regulations for autonomous vehicles strikes a balance between protecting public safety and embracing innovation." However, California's loss is Arizona's gain as Uber decided to pack up its cars and take them to Arizona.

Arizona Governor Doug Ducey issued a statement saying, "Arizona welcomes Uber self-driving cars with open arms and wide open roads." The state's department of transportation said that Arizona does not have any special licensing or permit requirements. Autonomous vehicles require the same registration as any other vehicle.

This is not Uber's first foray into Arizona. In 2015, the company set up a customer service office in Phoenix. The company also formed a partnership with the University of Arizona to research mapping and self-driving technology.

Apart from licensing issues, Uber has also faced technological problems during its trial. It was found that the company's self-driving cars need human intervention to make certain turns. The cars are alleged to be especially risky for bike riders as they are not able to make a smooth transition into bike lanes.