Taxi services Uber and Lyft have been told they must close all operations in the US state of Virginia, after being told they were operating without correct permits.
The Virginia Department of Motor Vehicles (DMV) has issued cease-and-desist letters to both companies, having previously fined Uber and Lyft for more than $35,000 claiming they didn’t have the correct permits under Virginia’s passenger laws, according to The Guardian.
The news is the latest blow for Uber – Transport for London this week referred the row between the taxi app and disgruntled London cabbies to the High Court, after the The Licensed Taxi Drivers Association (LTDA) suggested the app equates to being a taximeter, which private vehicles are not allowed to use.
In the letter sent to Uber, Richard Holcomb, commissioner of the Virginia DMV said: “For over six months, the Virginia Department of Motor Vehicles (DMV) has alerted Uber Technologies, Inc (Uber) of its requirements to obtain authority before operating in Virginia… I am once again making clear that Uber must cease and desist operating in Virginia until it obtains proper authority.”
“Furthermore the DMV will issue civil penalties to Uber’s drivers that do not have authority to provide transportation for compensation.”
Those opposed to Uber claim it undermines their business and say it is running an un-licensed taxi service – Uber however claims it is running a ride-sharing service by connecting riders to drivers through its app.