Lyft and Uber to continue operations in Los Angeles

Lyft and Uber to continue operations in Los AngelesLyft and Uber have indicated that they will continue to provide their ridesharing service in Los Angeles even after the city's authorities have ordered the two companies to stop their services.

The Los Angeles Transportation Department has sent cease-and-desist letters to the two companies on Monday. The authority has said that the two companies as well as Sidecar do not have permits or licenses to operate and are violating the city's municipal laws. The companies are allowing users to request ride using their smartphone apps.

The apps locate users by GPS and are then picked up by others using their own cars for rides. Following the rise, the users pay for through the smartphone app. Lyft and Uber ahev claimed that they already have an agreement with the California Public Utilities Commission that permit them to operate statewide.

"Your company and all drivers and vehicles dispatched via your mobile app sysem are hereby directed to cease and desist from picking up passengers within the City of Los Angeles," the letter from the authority read.

The two companies have said that they will continue to operate in the city.

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