Are cities and states crackdowns on services like Uber, Lyft, and AirBnb, exercises in sound governance and regulations, or is it an example of government intruding into the free market with burdensome regulations?
http://dcist.com/2014/06/virginia_tells ... to_sto.php
Virginia DMV Tells Uber And Lyft To Stop Operating
07102012_uberlogo.jpegWhile D.C.'s taxi regulators and sedan services like Uber have not gotten along in the past, a government agency in Virginia has taken things to the next level.
The Virginian-Pilot reports that the state's Department of Motor Vehicles sent cease-and-desist letters to Uber and Lyft informing the companies that their operations are currently illegal. (The DMV is studying a change in the passenger carrier law, but in the meantime they must stop.
:
In the cease and desist letters, DMV Commissioner Richard Holcomb told representatives for both companies that he is “once again making clear” that they must stop operating in Virginia until they get the proper authority.
Holcomb wrote that he “strongly” suggested the companies focus their resources on participating in the state study “rather than continue illegal operations in the meantime.”
He told the companies to alert their drivers in Virginia that the DMV will be enforcing its existing laws.
If Uber and Lyft drivers continue to operate, they face fines.
An Uber representative said a statement is forthcoming. See the letters [PDF] here and here.
Update: Lyft will continue to operate in Virginia. From a spokesperson: "We've reviewed state transportation codes and believe we are following the applicable rules. We'll continue normal operations as we work to make policy progress." :
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. As many of the current regulations surrounding taxis and limos were created before anything like Lyft's peer-to-peer model was ever imagined, we're committed to continuing to work with state officials to craft new rules for this new industry. We truly believe that if we approach situations like this positively and collaboratively, we can work together with local leaders to greatly improve transportation access, safety and affordability.
And here's a statement from Uber:
The DMV’s actions today are shocking and unexpected. Uber has been providing Virginians with safe, affordable and reliable transportation options for months and has continued to work in good faith with the DMV to create a regulatory framework for ridesharing. The DMV decision today hurts thousands of small business entrepreneurs who rely on the Uber platform to make a living, create new jobs and contribute to the economy - and it hurts the countless residents who rely on Uber to connect them with affordable, safe and reliable transportation alternatives. We look forward to continuing to work with the Virginia DMV to find a permanent home for ridesharing in the Commonwealth.