(Alexandria, VA July 18, 2014) – A coalition of eight taxicab and limousine companies – all locally-owned and based in Virginia — today filed a civil action in Fairfax County Circuit Court to enjoin the California-based transit companies of Uber and Lyft from operating in Virginia because they lack the necessary legal permits required by the Commonwealth.

The civil action describes events, which began in 2013, when Uber and Lyft targeted Northern Virginia for their “app-based” business without obtaining the permits either for broker or taxi services. Those permits are typically issued by localities with uniform requirements such as driver background checks, proof of insurance, and levels of community service (including disabled access).

In April 2014, the Virginia Department of Motor Vehicles fined Uber and Lyft for operating without a license. On June 5, the DMV issued a “CEASE AND DESIST” order against the two firms. The next day, Uber emailed a statement to its client base that “we will continue to operate as usual” despite the order.

Uber and Lyft according to the complaint do not require their drivers “to comply with Virginia’s for-hire passenger carrier regulations; do not require their drivers to pay commercial property taxes, purchase commercial auto insurance, or have local business licenses; and otherwise evade legal requirements enacted for the protection of passengers which competitors in the limousine and taxicab industries cannot escape.”

To date, the Attorney General’s office has taken no action to require Uber and Lyft to comply with the DMV order or state law despite serious concerns raised in both the legal and insurance communities about the safety of the riding public while using these services.

Spencer Kimball, the owner of Northern Virginia Checker Cab and one of the complainants, stated:

“We are just a group of small business owners.  We built our businesses playing by the rules and by adhering to state law and local ordinances.  For these billion-dollar companies to openly defy those laws and then try to circumvent the legislative process is not only illegal, it is wrong.  This is not about competition.  This is first and foremost about public safety and these companies ignoring the law to gain an unfair advantage over their competition.  None of us wants to go to court, but Uber’s and Lyft’s blatant disregard for the law and the ongoing lack of enforcement have left us no choice.” 

The lawsuit asks that the Court enjoin the actions of Uber and Lyft until such time as they comply with state law.

To interview a representative of the taxicab coalition, please contact Joel Rubin, Rubin Communications Group, at 757-456-5212.

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