Uber was forced to give in to the DMV after it confiscated the licenses of 16 of its vehicles.
In an email, the DMV claimed that the registrations were “improperly issued for these vehicles as they were not properly marked as test vehicles”.
There was little Uber could do after that other than admitting that the pilot program had been stopped and stated that it was now looking for alternate uses for the autonomous cars.
The vehicles now have to be reassigned but Uber is continuing its efforts to “develop workable statewide rules” so the cars can once again operate on California roads.
Earlier this month, Uber defied the DMV and launched its self-driving cars services in San Francisco without obtaining proper permits.
Uber launched in 2009 and has witnessed the sort of growth only a few small start-ups experience in the time of 7 years. Uber currently functions in 400 cities in 72 countries with revenue amounting to $1.5billion in 2015.
However, Uber’s success came with immense challenges. The company faced resistance from taxi-drivers unions in many countries as Uber seized their share of customers. Several governments questioned Uber’s recruitment tactics as it was revealed that many drivers did not have licenses.
The company faced its greatest threat when issues regarding the safety of its passengers arose and Uber found itself involved in ugly incidents of harassment, rape, and even murder.
Uber countered the security problem by improving its App to enable the tracking of vehicles and investing in customer service. Customers are asked to rate drivers after every journey, drivers with the lowest ratings are dropped. Uber’s customer service has helped it secure a loyal customer base that has vouched for it each time it was hit with a major PR crisis.
Other than geographical expansion, Uber has expanded its business model in the US by launching UberEats and UberRush. It has also launched UberAuto rickshaws in cities of Pakistan to adapt to the local market.
Other companies from around have adopted Uber’s business model since its launch but Uber remains on top of the market.