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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

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.