Los Angeles puts ridesharing companies on notice, demands local permits

Someone didn't get the memo, apparently. Despite California's Public Utilities Commission giving ridesharing services the all clear on a statewide level, Los Angeles' Department of Transportation has sent cease-and-desist warnings to Lyft, Sidecar and Uber, claiming that all three are breaking local laws by operating without city permits. Drivers could face arrests and lose their cars if they keep serving customers, according to the notices. Not surprisingly, the ridesharing firms have a very different opinion. Uber tells Engadget that it's operating a limousine-like service which only needs PUC permission to operate, and Lyft says it's talking with the Mayor's office to resolve what it believes is a "state issue." For now, we're at an impasse -- let's just hope that Los Angeles follows in New York's footsteps and tries to reach a happy medium.