Uber suspends Nevada Operations

Uber suspends Nevada Operations

Uber, a ridesharing service provider that operates in multiple international cities was forced to temporarily suspend operations in a US state.

The company had to take the step after Washoe County District Court Judge Scott Freeman issued preliminary injunction this week, thereby preventing Uber from statewide operations.

The company widely uses a smartphone application to arrange rides between riders and drivers by allowing users to call a ride using an app on their smartphones. This operation of the company received huge criticism from traditional taxi operators and some governments.

Troubles in Nevada increased ever since the company began its operations there in October. According to the Las Vegas Review-Journal, regulators with the Nevada Taxicab Authority and the Nevada Transportation Authority immediately went against Uber drivers alleging them as illegal and unlicensed carriers.

On Wednesday, the company reported that it has temporarily stopped offering rides in Nevada as a result of the ruling.

Uber spokeswoman Eva Behrend said, "It's unfortunate that Nevada is the first state in the nation to temporarily suspend Uber. We remain committed to working with Nevada's leaders to create a permanent regulatory framework that affords Nevadans the flexibility and innovation offered by Uber".

Uber says that it is the victim of overzealous enforcement of antiquated laws that never envisioned smartphones that could "e-hail" transportation on demand. The company has refused to seek the licenses because it maintains it's a technology company, not a motor carrier

At this point, it remains unclear whether any bills that would change the regulations are also in the progress. None of the brief summaries of the hundreds of bills lawmakers and state agencies have requested so far mention ridesharing.