Update: Following today's decision, Uber has released this statement: "Nevadans overwhelmingly support the transportation choice, competition, and job opportunity Uber brings to the Silver State. Â We will continue to work with regulators and state leaders as we evaluate this development."
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Washoe District Judge Scott Freeman granted an injunction Tuesday evening ordering the ride-sharing company Uber to stop operating in Nevada.
State regulators argued Uber should not be able to operate in the silver state saying they don't play by the same rules as taxi companies.
One of the sticking points is that Uber says it is not a cab company but a technology company where people download their app to hire a driver.
They also argued drivers are independent contractors that don't work for Uber. The Nevada transportation authority says Uber should not be allowed to operate unless they follow the same regulations that common carriers do. The state requires cab companies to conduct criminal background checks and drug testing. Drivers must provide annual DMV records and annual vehicle inspections are also required.
Another point that was argued was regarding the number of hours a driver would drive. Cab drivers are allowed to drive up to 12 hours per day. Uber says since most of their drivers are part-time they average 15 to 18 hours per week.
They testified that they already have many of these regulations in place, on their own -- and have technological features that make their company even safer.
Another concern that was brought up is pricing. Cab companies have a set fare that they must abide by. Uber uses surge pricing, meaning the cost can go up and down, depending on demand -- like hotels do.
Monday the Nevada Supreme Court denied an injunction request from ride-sharing service Uber that would have blocked a Washoe District Court judge from hearing the case Tuesday in Reno.
The Nevada Supreme Court was asked to decide whether a state court judge in Reno or one Las Vegas should hear a bid by state taxi regulators and limousine firms to block ride-sharing company Uber Technologies from operating.
Beyond the venue dispute is a key question: Does an Internet app matching riders with drivers using personal cars for commerce infringe on franchise rights of taxi companies and cabbies to shuttle fare-paying passengers to places like airports and the Las Vegas Strip?
Since Uber launched Oct. 24, Nevada Taxi Authority agents have cited Uber drivers and impounded cars.Â
We are working to get reaction from both parties and will bring that to you as soon as we get it.
The Associated Press contributed to this story
