Virginia DMV Hits Uber, Lyft with Cease-and-Desist

Courtesy of Uber
Courtesy of Uber

The Virginia Department of Motor Vehicles sent cease-and-desist orders Thursday to popular passenger carrier services Lyft and Uber, ordering the two companies to halt operations in the state or face fines, The Washington Post reports.

“I am once again making it clear that Uber must cease and desist operating in Virginia until it obtains proper authority,” Virginia DMV commissioner Richard D. Holcomb said in the letter. Virginia officials fined Lyft Inc. and Uber Technologies Inc. $35,000 in civil penalties for operating without proper permits earlier this year, according to the Virginia-Pilot and CBS D.C.

The two companies have run into similar roadblocks in California, Texas and Massachusetts, among others, yet both companies continue to operate in these states. Lyft spokeswoman Chelsea Wilson said in an emailed statement the companies will continue operating in Virginia despite Holcomb’s order.

“Virginia residents have enthusiastically embraced Lyft as an affordable and reliable transportation alternative that increases safety by going above and beyond what is required by existing transportation services,” Wilson said.

Uber and Lyft are both San Francisco-based  startups that allow drivers to shuttle passengers using their personal cars as taxi alternatives. Uber operates in more than 100 cities and was valued at $3.5 billion last year.

What are your thoughts on the battle between states and startup services like Uber and Lyft?
TrustMe June 07, 2014 at 05:01 PM
Anything to compete with the crappy taxi services and force them to increase the quality of service gets an A+ from me. I too have had near death experiences in "certified" yellow cabs.
John Ellis June 07, 2014 at 11:36 PM
Totally agree. Just more red tape to discourage innovation. Can't help wonder how much the taxi companies are paying to line pockets.
Dave Jennings June 09, 2014 at 07:43 PM
Certification by DMV does not appear to have any influence on quality or safety of service in this part of the state. Bring on competition from Uber and others to force taxi folks to either upgrade to match the service offered or seek other employment. Must be money going into campaign funds.


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