Uber and Lyft Now Legally Allowed to Operate in Virginia

Virginia state officials announced Wednesday they have reached an agreement with app-based taxi alternatives Uber and Lyft that will allow them to continue operating in Virginia.

Wednesday’s announcement from Gov. Terry McAuliffe and Attorney General Mark R. Herring comes two after the Virginia Department of Motoer Vehicles issued a “cease and desist” letter to both companies.

The temporary legal framework – one of the first of its kind in the nation – formed through extensive discussions among the companies, the Virginia DMV, the governor’s office and the attorney general’s office, according to the news release.

“In order for Virginia to remain economically competitive, it is important that we welcome innovative companies like Uber and Lyft and provide them with the resources they need to safely and effectively operate in the Commonwealth,” Gov. Terry McAuliffe said in a statement.

“Technology – specifically related to smart phones – continues to advance at a rapid pace, and I am pleased that we were able to work together to find a swift solution that will provide Virginia’s workers, students and families with more transportation options.”

The Virginia Department of Motor Vehicles granted Uber and Lyft’s applications for transportation broker’s licenses and temporary operating authority, effective immediately. The DMV can revoke the temporary operating authority if the companies fail to comply with Virginia laws and regulations for passenger safety and insurance.

“I’m proud that we were able to get folks back to the table and get them talking again, and now we’ve shown that Virginia can be responsive to innovative businesses while promoting public safety and the rule of law,” said Attorney General Mark Herring.

Herring said though the companies offer services Virginians want, it wasn’t acceptable for them to operate without complying with regulations and measures that ensure the safety of passengers and motorists.

“I hope other states will look to Virginia as a model for how to safely integrate the so-called sharing economy,” Herring said.

Image: Courtesy Uber