Uber, the ride-sharing phone app, has shut down in Nevada after a judge ruled the company was operating outside of the state's regulations on taxi companies.
"On the eve of Thanksgiving — when Nevadans should be celebrating with family, many are now worried about how they’re going to pay their bills," a statement from Uber read, the
New York Post reported. Uber had 1,000 drivers in Nevada.
The company says it shouldn't be regulated like taxi companies because it is a tech company and doesn't operate taxi services. Still, it chose not to continue operating while it appeals the decision of Washoe County District Court Judge Scott Freeman.
Uber has collected 18,000 signatures on a petition for Nevada to reverse the decision, the Post reported.
Nevada's attorney general filed suit to stop Uber from operating in the state after Uber announced via email it was open for business in the state on October 24. That move caught Nevada Department of Business and Industry Director Bruce Breslow by surprise because he said he had been in talks with Uber about ways they could comply with the state's regulations.
"Why did Uber choose to operate first without regulation?" the judge asked Uber's lawyers during a preliminary hearing last week. "Why didn't you try to change the law first, then operate?"
Both the judge and Freeman praised the company's product, which uses the app for customer's to hail rides from individuals who use their own cars.
"But I'm charged with following the law — the law currently in existence. ... I'm not going to risk the safety of the public," the judge said.
The company has been under fire from traditional taxi companies as well as women who say they have felt uncomfortable or even been assaulted by Uber drivers.
Emil Michael, senior vice president of Uber, reportedly suggested Uber hire people to look into members of the media who report negatively on the company.
PandoDaily editor Sarah Lacy was mentioned specifically after accusing the company of sexism.
Those and other setbacks have yet to hurt to company's bottom line. It's current valuation of $17 billion could more than double to $40 billion after another round of funding, Bloomberg reports.
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