“It’s unfortunate that Nevada is the first state in the nation to temporarily suspend Uber," spokeswoman Eva Behrend in a statement Wednesday 26 for Reuters.
The western state became the first in Uber history to get rid of ridesharing services in response to backlash received from the Nevada Taxicab Authority and the Nevada Transportation Authority.
Uber is known for its accessible phone app that connects passengers with independent contract drivers who have the freedom to commute with their own vehicle. The company guarantees that all late-model cars are in good condition and that vehicle motorists are inspected before hired. Drivers are required to carry $1 million insurance coverage provided by Uber “as a blanket insurance policy for its drivers when in the act of transporting customers.” However, insurance companies prefer Uber drivers to have more expensive policies when it comes to unexpected incidents. Most traditional taxi commissions view this new style of operation as a clear violation of Nevada’s transportation regulatory system—deeming Uber drivers as illegal, unlicensed commuters.
Since Uber considers itself to be more so of a technological company, then the ridesharing enterprise may just be going against safety rules mandated by transportation regulators.
Just after a month of operation in the state, more than 50 incidents involved taxicab authorities summoning local police to arrest Uber drivers in both Las Vegas and Reno. However, the hostility against Uber didn’t stop there.
A preliminary injunction issued by the Washoe Country District Judge Tuesday 25 demanded the company to suspend all operations statewide.
In response to all the criticism, Uber decided to promptly pull out of the state.
On its website, Uber announced the temporary change: “beginning tonight, nearly 1,000 jobs disappeared in Nevada and those residents lost their ability to earn a living. But, rest assured, Uber is in this for the long-term and we are committed to the people of the Silver State."
Uber’s service interruption came at a time when holiday traveling was in high demand over the Thanksgiving weekend—especially in Las Vegas.
Although the tension between Uber and Nevada’s taxi commissions runs high, Behrend says that the company will be persistent in finding a way to combat the issue.
"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," she said.
Nevada isn’t the only state in opposition of Uber’s ridesharing approach. As one of the fastest growing innovative services in the transportation industry, the company currently operates in over 200 cities in the U.S. Cities located in states like Illinois, Pennsylvania, New York, Virginia, and Florida have challenged Uber’s safety methods.
While Uber is for the most part constantly placed in a bad light, its $18.2 billion value tells a different story.
Investment firms have all funded its operation over the last five years. Soon, the company may very well see its value peak over $30 billion, making it the highest-valued start-up company backed by venture capital.