Uber ordered to stop operating in South Carolina

WLTX-TV, Columbia, S.C.

COLUMBIA, S.C. — Ride-sharing service Uber has been ordered to stop operating in South Carolina until it gets the proper certification by the state.

The Public Service Commission issued a directive Thursday telling the company to cease and desist its service for now.

Commissioners say Uber needed to have gotten a certificate of public convenience and necessity, which is required by law, before it could start its business in the state. That certificate is required for any motor vehicle carrier, including taxi cab services.

"Consumers benefit from, and deserve choices in, the marketplace," the commission wrote. "However, those choices must be consistent with state law intended to protect the public."

According to the commission, Raiser LLC, a wholly-owned subsidiary of Uber, is in the process of applying for the certificate.

San Francisco-based Uber launched in four South Carolina markets — Columbia, Charleston, Myrtle Beach and Greenville — in July. The service allows users to request a ride through its app, which then allows them to agree on a price, destination and pickup time.

The City of Columbia announced in August that it would not issue work permits for Uber until it got clarification from the Public Service Commission that Uber could be classified as a passenger carrier in the state.

While Uber says they give their drivers extensive background checks, some city and state governments say have concerns about the drivers, including whether they have the proper level of insurance and other requirements.

In December, after being told to cease operations in Portland, Ore., Uber agreed to stop picking up customers for three months as part of an agreement to help the city update its taxi regulations. The city promised Uber it can continue operating in three months, whether regulations have been changed by April or not.