This is the Cato Daily Podcast for Friday, June 6, 2014.

I'm Caleb Brown.

The Commonwealth of Virginia is now the latest state to compel ride sharing services Uber and Lyft to either change their

business model, accept the same regulations that govern taxi cabs, or stop helping

people get where they want to go. Matthew Feeney, a policy analyst at the Cato Institute,

offers his thoughts.

I've spoken with Peter Van Doren about this as well,

and since something that he tries to stress

and that I know you stress is that Uber and Lyft are not taxi cab companies.

Uber and Lyft are both providing services that allow us to do something that we've been doing for a long time, which is to

arrange for rides across town and across different sort of jurisdictions.

They don't actually, when it comes to the controversial UberX and Lyft services, all that's happening is people using their own vehicles to pick up passengers.

Using the Uber app and the Lyft app has a means to find customers.

And that's what has lawmakers and regulators upset.

So this is what's going on in Virginia.

The state DMV has sent cease and desist letters to

Uber and Lyft saying you know unless you fall in line essentially you need to stop operating so what is

falling in line look like in Virginia well falling in line would be having to

change the business model and for Uber and Lyft to start behaving more like taxi

companies which of course as I mentioned earlier they're technology companies

really.

Uber and Lyft both say that they're going to continue operating in the Commonwealth of Virginia despite these letters and Arlington County police say that they'll assist with enforcement but that is not a priority at the moment.

...