San Francisco-based company Uber has been ordered by South Carolina regulators to cease operations in the state while it looks to obtain permission to legally conduct business there.
The ride-sharing company said in a statement that South Carolina Public Service Commission's order directed at Raiser LLC, an Uber subsidiary, was not expected and issued despite the company's close work with South Carolina regulators.
"We have challenged the order and remain committed to providing South Carolinians with greater opportunity and choice," the company said, according to Reuters.
The commission said that Uber has been operating in the state since July. Currently, on its website, Uber provides service for four major South Carolina cities: Myrtle Beach, Greenville, Columbia and Charleston.
Uber has been under intense scrutiny lately all around the world over passenger safety issues. Within the last two months, two Uber drivers in Chicago and one in New Delhi, India, have been accused of sexually assaulting passengers.
Last month, prosecutors in San Francisco and Los Angeles sued Uber for misleading customers about the background checks it conducts on its drivers, according to Reuters.
It was also announced on Thursday that Taxi drivers in Los Angeles will soon have to use an Uber-like app to allow riders to hail cabs from their mobile phones. The "e-hail" app requirement should help licensed taxis compete against ride-sharing apps like Lyft, Uber and Sidecar.
Other areas around the U.S., especially those having issues with Uber, could eventually decide on a similar solution to make things fair with cab companies.
Earlier this month, Uber said it would cut prices in 48 of its U.S. markets, the same day the China ministry banned taxi hailing apps like Uber from using cars and sending out drivers without licenses.
Uber is valued at around $40 billion currently in its latest fundraising, according to Reuters.