Uber: South Carolina issues cease and desist order against taxi company over licensing

The company had already been sued and restricted by Portland, Oregon

Uber has been banned from operating in South Carolina until a licence is issued (Getty Images)

South Carolina has issued a cease and desist order against Uber after Portland, in Oregon, sued the company and stopped it from operating last year over public safety rules.

This time, South Carolina also issued the same order on the company, and its wholly owned subsidiary Rasier, on Thursday over unlicensed drivers prior to starting to pick up passengers from July.

The Commission requires all taxi companies and “motor carriers transporting persons or property for compensation” to obtain a certificate in accordance with the law due to concerns with public safety, it claims.

The order states: “Neither Rasier, nor any of its affiliates, nor any of its network partner drivers have obtained a Certificate of Public Convenience and Necessity prior to operating.”

Uber can only resume business when they are approved and issued a certificate, it added.

The company is threatened with fines on their drivers in South Carolina if they continue to pick up passengers without appropriate carriage licences.

Uber was eventually allowed to operate in Portland under specified requirements. The transport authority claimed that “fairness” in relation to other taxi companies, as well as safety, was a major driving force in suing the company and issuing the cease and desist order.

Mayor Charlie Hales had said: “Taxi cab companies follow rules on public health and safety. So do hotels and restaurants and construction companies and scores of other service providers.

“Because everyone agrees: good regulations make for a safer community. Uber disagrees, so we’re seeking a court injunction.”

A hearing scheduled for 26 January in Portland had been suspended.