Both Uber and Lyft have applied for passenger transportation broker's licenses and have also requested temporary operating authority, Department of Motor Vehicles spokeswoman Sunni Blevins Brown confirmed.
Generally, temporary operating authority is reserved for an immediate and urgent service need with other authorized carriers not being available to provide it, she said. In their latest requests, the San Francisco-based startups have submitted additional information to back their case that they qualify, Brown said.
Now, the DMV is revisiting the issue while seeking guidance from the Attorney General and governor's administration, Brown said.
"I think it's a very good sign that the parties are working together. I have no idea where it's going to lead," said Secretary of Transportation Aubrey Layne.
The companies, which both entered the Hampton Roads market by offering free rides in April and May, provide smartphone app-based platforms to allow part-time drivers using their own vehicles to connect with paying customers. However, the companies began operations in Virginia without applying for broker's licenses despite DMV warnings that they needed proper authority. Subsequently, the DMV fined Lyft $9,000 and Uber $26,000. In June, DMV sent them cease-and-desist orders.
"After those cease and desist letters went out I knew there had to be a better way to resolve this issue," Attorney General Mark Herring said in a prepared statement. "I'm glad we were able to get folks back to the table and I appreciate the work my transportation team has done along with the DMV, the McAuliffe administration, and the companies to try to give consumers more transportation options that are safe and appropriately regulated."
Lyft has since withdrawn its appeal to the civil penalty and paid the fines, Brown said. Uber has indicated it also intends to pay the fines, Layne said. The companies haven't been fined since the initial penalties, Brown said.
The state is now reviewing the broker's license applications and the public has two weeks to make any protests, Brown said. The state will evaluate whether Lyft and Uber drivers need to obtain operating authority as part of the review of the companies' requests for temporary authority.
Layne anticipates state rules will need to be changed to allow for technology-based transportation business models but he anticipates that Uber and Lyft will also have to make some changes as well. The state isn't in the business of supporting one model over another but must ensure public safety by verifying companies have proper insurance and certified drivers, Layne said. The local taxi industry has been calling for a level playing field and that Uber and Lyft be held to the same standards.
The DMV plans to produce a study of the state's passenger carrier laws and business models like Uber's and Lyft's before the next legislative session. Ultimately, lawmakers will decide on any rule changes.
"The question is: is there a valid exemption for them to operate until then?" Layne said.
Uber released this statement in response to questions: "Thanks to the leadership of Governor McAuliffe, Attorney General Herring and Secretary of Transportation Layne, Virginia is standing up for innovation, job creation and consumer safety, and is on it's way to create a permanent regulatory home for ridesharing. We look forward to a swift review of our DMV application and continuing to provide Virginians with the Uber they know and love."
Lyft spokeswoman Chelsea Wilson said, "We are working collaboratively with the DMV and state leaders toward a solution that maintains the highest level of safety for drivers and passengers while preserving a future for ridesharing in the state."
©2014 the Daily Press (Newport News, Va.)
