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?