The Virginia Department of Motor Vehicles (DMV) today issued a “cease and desist” order to Lyft and Uber, popular metropolitan-area rideshare programs. The services are in violation of state law under which their business model falls. Both companies have received civil penalties by the state before today’s order, but remain in operation. In April, the DMV sanctioned Uber for over $25,000 and Lyft for nearly $10,000.
The companies offer a service where mobile applications are used to pair patrons with part-time drivers, much like a personal taxi service. May Uber drivers use higher-end vehicles while the large pink mustache on the grill of vehicles can identify Lyft drivers.
A Lyft car pictured above
The DMV alerted residents of the Commonwealth to research any service such as Lyft and Uber to ensure hired drivers have proper insurance coverage, undergo driver screenings, and keep vehicle maintenance records.