Va. Department of Motor Vehicles orders Uber, Lyft to 'cease and - DC News FOX 5 DC WTTG

Va. Department of Motor Vehicles orders Uber, Lyft to 'cease and desist'

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WASHINGTON -

The Virginia Department of Motor Vehicles has issued a cease and desist order to popular mobile for-hire passenger and ridesharing service companies, Uber and Lyft.

The Virginia DMV said both Lyft and Uber have been notified for months that they need to obtain proper authority to run their operation in Virginia.

In letters to each of the two companies, the DMV says, “Virginia law requires for-hire passenger carries to have proper operating authority." That means drivers who collect compensation for transportation must have the proper licenses to operate.

The two ride services have not gone through that process and are in violation of this statute.

Rachel Holt, Uber's regional general manager, said the company was blindsided by this move.

"To be honest, we were completely surprised and taken aback by this approach," she said. "We have been working with the DMV and members of our team had been working with the DMV for months now. We received no indication that this was the route they were going to take."

The letters also said the DMV will issue penalties to each of the companies' drivers "that do not have authority to provide transportation for compensation."

Read the letters here:

http://www.scribd.com/doc/228370422/Va-DMV-Letter-To-Uber

http://www.scribd.com/doc/228370285/Virginia-DMV-Letter-to-Lyft

Uber issued this statement on the DMV’s cease and desist order:

“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.”


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