State Wants SF Ride-Sharing Apps To Shut Down

State regulators are demanding ride-sharing apps in San Francisco cease and desist.

By Chris Roberts
|  Monday, Oct 8, 2012  |  Updated 2:38 PM PDT
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State Wants SF Ride-Sharing Apps To Shut Down

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The pink-mustached cars may be going away.

 Ride-sharing apps in San Francisco like SideCar and Lyft must be shut down, according to state regulators who say that the car-services lack required permits.
 
The "high-tech alternatives to the way taxi companies usually operate" need "charter party carrier permits," according to the San Francisco Chronicle.
 
The Public Utilities Commission issued cease-and-desist orders against the companies in August, the newspaper reported.
 
The state agency also issued cease-and-desist orders against Uber, which also allows passengers to call for rides using smartphone apps, the newspaper reported.
 
With Lyft, a user is connected to a driver of a private vehicle, who is then compensated by a tip. The company says it screens potential drivers for insurance and for licenses, but the state says there's no third-party verification.
 
The permits cost $1,100 to acquire, and the commission can impound cars, impost fines of up to $5,000 a day, or put operators in jail who do not comply, the newspaper reported.

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