S.C. slams brakes on Uber, solidifies Myrtle Beach’s stance on business licensing requirement

The controversial ride-sharing service Uber has been ordered to stop operating in South Carolina, a move local officials have supported all along.

Since July, uberX — a branch of Uber Technologies Inc. — has been trying to operate in Myrtle Beach. The service allows users to request a ride through a smartphone app, which then allows them to agree with a driver on a price, destination and pick-up time.

But Myrtle Beach officials wasted little time sending a message to those who offered rides to others without proper licensing by ticketing three Uber drivers in late July. The citations were issued through a sting operation, and Lt. Joey Crosby, spokesman for Myrtle Beach police, said Friday he was unaware of court dates for the defendants.

The state’s Public Service Commission issued a cease-and-desist order to Uber late Thursday. Company spokesman Taylor Bennett says Uber plans to appeal the state’s ruling and is committed to providing the service to South Carolinians.

Uber launched its ride service in three other South Carolina cities last year: Charleston, Columbia and Greenville.

The state said the service must stop until an application to provide the service is approved. Several other cities in the nation have also issued cease-and-desist orders for Uber.

Mark Kruea, spokesman for the city of Myrtle Beach, said Uber needs to be treated like other businesses that require licenses.

“Businesses operating inside the city need a business license,” Kruea said. “Taxicabs need certificates of convenience and necessity. Those rules are in place to protect the public. The taxi service, or car service, operates on the public right of way and it’s in the public’s interest that they meet some level of scrutiny so the people who use those services are safe and insured should something happen.”

The safety of the service has been under scrutiny across the nation in recent months. In November, an Uber driver from Chicago was accused of raping a woman passenger. In December, an Uber driver from Boston was charged with rape and kidnapping after allegedly strangling and sexually assaulting a woman after picking her up.

Last year, North Carolina lawmakers heard presentations on Uber, as well as similar ride-sharing service Lyft and short-term rental sites such as Airbnb. Legislators said that services such as Uber, Lyft and Airbnb represent a new business model that needs to be studied.

Brad Dean, CEO of the Myrtle Beach Area Chamber of Commerce, said the company, at times, can provide an “impressive level of service,” but it needs to abide by local laws.

“... It is imperative that all businesses, no matter what industry they serve, operate on a level playing field,” Dean said in a statement. “Allowing any business, Uber or otherwise, to operate without proper certification creates an unfair advantage within our community and our state.”

Robbie Singh, owner of Diamond Taxi, said although the Uber impact was just gaining momentum, he considers it a win for the licensed taxi companies.

“This is really good news,” Singh said. “[People] were using [Uber] a little bit, but not a whole lot because they only had three or four routes at a time.”

The Associated Press contributed to this report.

This story was originally published January 16, 2015 at 1:48 PM with the headline "S.C. slams brakes on Uber, solidifies Myrtle Beach’s stance on business licensing requirement."