Taxi, limo companies say Uber, Lyft break the rules

Ridesharing services such as Uber and Lyft were dealt a blow from Virginia on Friday, and the taxi and limo association says they operate at an unfair advantage. (AP Photo/Jeff Chiu)

WASHINGTON — The association behind taxi and limo companies is firing back after the rideshare company Uber refused to honor a cease- and-desist order from the Virginia Department of Motor Vehicles.

Last week, when the DMV issued Uber the order, the company publicly refused to comply.

“We wanted to write to let you know that Uber will operate as usual, and we plan to continue full-speed ahead with our commitment to providing Virginians access to safe, affordable and reliable rides,” wrote General Manager for D.C. Zuhairah Washington and East Coast Region General Manager Rachel Hold in a statement.

The move is causing a ripple effect in the transportation industry.

Robert Werth, with the Taxicab, Limo and Paratransit Association, told CNBC that Uber is not competing on a level playing field.

“They’re unregulated; they’re not providing commercial automobile liability insurance; their drivers are not going through a licensing process,” Werth said.

He says that instead of being held to industry regulatory standards and complementing the market, rideshare companies such as Uber and Lyft are pulling business away.

Desoto Cab Company owner Hansu Kim agreed.

“While we are highly regulated in terms of how we operate, Uber doesn’t have to follow those same rules,” Kim told CNBC.

Uber did not return WTOP’s request for a response.

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WTOP’s Megan Cloherty contributed to this report. Follow @WTOP on Twitter and WTOP on Facebook.


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