California regulators continue to put pressure on transportation startups
KangaDo, the "Uber for Afterschool" app that offers to shuttle around children, was not licensed to operate in California, according to the CPUC's statement.
KangaDo's CEO Sara Schaer said that the company received the notice in April while it was still operating in private beta.
"We're all in favor of following rules and regulations and, as such, we're actually in pending status. That is why we are officially in private beta," Schaer told Business Insider. "We're not operating as a rideshare company pending final approval."
The company is now working through the application process, which it submitted in June.
Leap Transit, the bus company known for serving Blue Bottle coffee and freshly pressed juice, was also issued a cease-and-desist order in May. It suspended its service shortly thereafter.
Wheras KangaDo has applied for a permit and hopes to publicly launch after it goes through, Leap's situation looks a little more dire. The company posted three of its buses up for auction in June and is trying to sell its fourth and last remaining bus on eBay. Leap did not return request for comment.
California Public Utilities Commission has been tightening down on ride-hailing companies throughout the state. Last week, California gave Uber a 30-day notice and issued a $7.3 million fine for not handing over records to keep its Transportation Network Company license. Uber is not suspended though as it plans to appeal.