Well-known ridesharing business venture Uber has announced it decided to suspend the company’s operations in the US state of Nevada, jeopardizing in the process almost 1,000 jobs.
Companies akin to Uber allow people to call for rides using different apps on their smartphones, in a business challenge to the traditional taxi and limousine services – with growing popularity in recent years across US cities. Consequentially, these new business models have been challenged across the globe by taxi companies, limousine operators and even city officials – claiming the people working for the ride-sharing services don’t face the same intense scrutiny and abide the same stringent regulations as do traditional operators. Mirroring the situation and giving the same reasons, insurance companies ask drivers of Uber and rival companies to have more expensive insurance policies.
Uber decided to temporarily suspend activities in Nevada because of the first US legal precedent – a Washoe County District Court set a preliminary injunction that bans the company from statewide operations, citing as reasons regulatory concerns from a case that was send down from a split panel of the state’s Supreme Court, according to a report from the Las Vegas Review-Journal. “It’s unfortunate that Nevada is the first state in the nation to temporarily suspend Uber,” commented the company in a statement.