Auto Rental News
MenuMENU
SearchSEARCH

Los Angeles Car-Sharing Companies Receive Cease-and-Desist Order

Car-sharing companies Uber, Sidecar and Lyft received cease-and-desist letters from the Los Angeles Department of Transportation’s taxicab administrator, despite being authorized to operate by the California Public Utilities Commission.

by Staff
July 3, 2013
2 min to read


Three car-sharing companies received cease-and-desist letters from the Los Angeles Department of Transportation’s taxicab administrator last week. Uber, Sidecar and Lyft use mobile applications for consumers to request a pickup. Although some drivers aren’t professionally licensed to pick up customers, all drivers go through background checks.

Launched in Los Angeles in February, Uber already signed an agreement with the California Public Utilities Commission (CPUC) that indicated Uber services are authorized to operate statewide, according to Andrew Noyes, a spokesman for Uber. In a press release issued by CPUC in January, the CPUC stated that it had entered into an operating agreement with Uber while CPUC’s ridesharing rulemaking was in progress.

According to Noyes, Uber has complied with CPUC’s list of requirements for drivers, including proof of insurance, Department of Motor Vehicle checks and national criminal background checks.

Ad Loading...

Sidecar has also followed all the safety guidelines issued by CPUC, according to Rachael King, national social media manager for Sidecar. “These include background checks on all of our community drivers, GPS tracking of rides, a zero tolerance drug and alcohol policy and insurance that covers both riders and drivers for up to $1 million per incident,” says King.

According to King, Sidecar will continue to operate in Los Angeles. “We have an agreement with the California Public Utilities Commission that permits us to operate statewide. We are in contact with Mayor Villaraigosa’s office and Mayor-elect Garcetti's staff to address their concerns, and we plan to collaborate with them to continue to bring the benefits of ridesharing to LA.”

The Los Angeles Department of Transportation declined to comment.

By Amy Winter

More Rental Operations

A tech collage of electronic devices against a computer chip blueprint map.
Rental OperationsMay 1, 2026

Why Car Rental Can No Longer Run On Workarounds

The shift from branch-based software to connected operations is turning rental technology into strategic infrastructure.

Read More →
A tech collage of electronic devices against a computer chip blueprint map.
Rental OperationsMay 1, 2026

Why Car Rental Can No Longer Run On Workarounds

The shift from branch-based software to connected operations is turning rental technology into strategic infrastructure.

Read More →
A black Audi SUV superimposed on a historic scene from downtown Tashkent, Uzbekistan.

Carwiz Sets Up Rental Operations In Central Asia

The global franchise operation reaches a first in its rental fleet portfolio with new service in Uzbekistan.

Read More →
Ad Loading...
A raging brushfire in the countryside.
Rental Operationsby Martin RomjueApril 30, 2026

Where Rental Fleets Must Adjust To Shifting Catastrophe Risks

West Coast disasters pose unique challenges and liabilities for rental fleet operators, who are advised to take steps tailored to their specific situations.

Read More →
ARN Industry Newsmakers thumbnail page with ARN and ICRS logos and shots of Nick DiPrima and Martin Romjue
Rental Operationsby Martin RomjueApril 27, 2026

Using AI To Find Rental Car Damage

Angry car renters are storming social media, the mainstream media, and online ratings platforms to complain about charges they claim are either unfounded or excessive.

Read More →
Photo of CEO Krešimir Dobrilović against a gray modernist crooked-tile mural display.

Carwiz Opens Car Rental Service In Panama

A Carwiz partner in Puerto Rico is taking on the Panama franchise with operations in the nation's largest airport.

Read More →
Ad Loading...
A world map with Flexways logo and new locations headline.

Flexways Opens 10 Locations Among Franchise, Affiliate Rental Networks

The integrated business model combines each operator’s local expertise with international standards to boost sales.

Read More →
Photo of a suitcase, passport, and smartphone.

Traveler Customer Satisfaction Up This Year Data Study Shows

The study looks at customer analytics to size up performance in car rentals, rideshare, airlines, lodging, and OTAs.

Read More →
A rental car between two placards showing a symbolic revenue increase from $300 to $1600.

New Consulting Company Ready To Boost Point-of-Sale Revenue

Revcuity, an outgrowth of Frontline Performance Group, aims to help clients capture more revenue moments with face-to-face customers, including in the car rental space.

Read More →
Ad Loading...
Martin Romjue stands at conference stage podium close to a dangling, glistening chandelier.
Rental Operationsby StaffApril 15, 2026

Meet The (Semi-New) ARN Editor

Martin Romjue has been editing and reporting for ARN since 2023 and fully transitioned to the role of chairman of the International Car Rental Show in 2026.

Read More →
Ad Loading...