The mobile car-booking service Uber — which Wall Street could soon value at $12 billion — has been ordered by the Virginia DMV to halt its operations.
This comes after both services were hit with $35,000 fines for running without the proper permits.
Uber — the increasingly popular on-demand car booking service – and its car-sharing counterpart Lyft have faced mounting pressure from the state to cease its services.
Virginia — along with other states such as Maryland — are pushing back against the app-based services in part due to pressure from taxi companies that fear their businesses will take a financial hit.
Richard D. Holcomb, commissioner of the Virginia Department of Motor Vehicles, sent a cease and desist letter to the companies on Thursday.
“I am once again making clear that Uber must cease and desist operating in Virginia until it obtains proper authority,” Holcomb said in the letter.
Both companies state that they’ve reviewed the policies through their own legal channels and deem their operations fall within state law.
Both say they will continue to operate.
“We’ve reviewed state transportation codes and believe we are following the applicable rules,” Lyft spokeswoman Chelsea Wilson said in an e-mailed statement. “We’ll continue normal operations as we work to make policy progress.
Uber is currently appealing a decision in Maryland that stated it would have to operate as a for-hire carrier — which comes with its own regulations and costs.
Uber is banned in cities such as New Orleans, Miami and Portland — but are trying to push back against such bans and the tight grip that taxi services hold over the cities.