I think you missed the point, let me go get it for you:
It's a location based application. Operative and key words there are "location" and "based". It makes more sense to release in a limited location you have proximity to and are familiar with in an early release to iron out all the bugs before making an international release where tracking down inaccuracies can be much more difficult logistically.
I doubt it's an arbitrary restriction, it's done for the sake of ensuring the app works as designed in a controlled test-environment.
It's a location based application. Operative and key words there are "location" and "based". It makes more sense to release in a limited location you have proximity to and are familiar with in an early release to iron out all the bugs before making an international release where tracking down inaccuracies can be much more difficult logistically.
I doubt it's an arbitrary restriction, it's done for the sake of ensuring the app works as designed in a controlled test-environment.