Virginia has finally given the green light to Uber and Lyft, but it will come at a cost.
Virginia officials decided Wednesday to allow ride-sharing companies Uber and Lyft to continue operating in the state. In return, however, the companies must comply with a bevy of regulations that even the state calls “extensive.”
In June, fans of Uber and Lyft were up-in-arms after Virginia sent cease and desist letters demanding that Uber and Lyft shut down operations. Uber devotees even took to twitter with the hashtag #VANeedsUber and Uber vowed to continue operating despite the state’s interference.
Governor Terry McAuliffe and Attorney General Mark Herring will now temporarily allow Uber and Lyft to resume operations in the state, provided that they comply with a long list of safety regulations. These include, among others, background checks of drivers, insurance requirements, and the maintenance of driver documentation which “must be available to DMV on demand to investigate any complaints, and must be available for periodic audits to ensure compliance.”
Virginia also stipulates that if Uber or Lyft fail to meet the requirements, the DMV can revoke the company’s operating authority.
While some safety regulations can certainly be seen as reasonable, the attempt to showcase the Virginia government’s mighty power in reference to these innovative companies is exactly the reason the Republican National Committee spoke out on Uber’s behalf Wednesday.
“Why should any company have to fight the government tooth-and-nail just to be a given a chance to compete?” RNC Chairman Reince Priebus said. “The issue is larger than Uber. How many companies, how many products, how many innovations have died prematurely because the government over-reached and interfered in the free market? Government has a role to play, but that role isn’t to protect the status quo.”
Uber and Lyft’s ability to operate has only been granted on a temporary basis until Virginia can complete a study on a long-term legislative solution to the current traffic jam between Uber, Lyft and taxi companies. The study is to be completed in time for the 2015 legislative session.
That may be why Uber isn’t counting its chickens just yet. In an e-mail to users, Uber said that while the temporary agreement will enable it to operate in the short-term, “the work isn’t done yet.”
“We’ll need your voice again in January when legislators are back in session,” the company said, “to make sure they pass legislation that permanently allows us to operate.”
