Los Angeles and California disagree on legality of ride-sharing startups
Skift Take
The ride-sharing startups received the green light to operate statewide and are now caught in the middle of a state versus city regulation debate; however, it’s anticipated that LA’s new major will quick change rules in favor of innovation.
...[Los Angeles] sent near-identical cease and desist letters to Uber, SideCar, and Lyft demanding that each cease operating an “automobile-for-hire” business without a permit.
Earlier this year, Uber, Sidecar, and Lyft each entered into agreements with the California Public Utilities Commission (CPUC) granting them permission to “operate while the CPUC’s ridesharing rulemaking is underway.”
“We were surpised by the news, in light of our agreement with the CPUC,” Sidecar co-founder Nick Allen said today when reached by telephone.
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