Transportation service Uber could raise a potential security risk for passengers because they don't abide by the same rules as cabs, Robert Werth, president of the Taxicab, Limousine and Paratransit Association, told CNBC Monday.
The company, which uses smartphone applications that allow passengers to find drivers, has come under fire recently by several states issuing warnings about the risks of such services. Last week the Virginia Department of Motor Vehicles sent a cease and desist letter to Uber and fellow ridesharing company, Lyft, ordering them to halt operations in the state.
"Their drivers are not going through a licensing process that requires you to have FBI fingerprinted analysis," Werth said in an interview with "Closing Bell."
Last week, Uber announced it raised $1.2 billion in new funding. That brings the company's valuation to $18.2 billion.
"It's pretty remarkable we're in the billions in terms of how big the company is and what kind of activity we're doing on a yearly basis," Uber CEO Travis Kalanick told "Closing Bell" Friday.
"Folks want to be able to push a button and get a ride very quickly, and if you can make the economics work so that it's actually more economical to push a button and get a ride than it is to own a car, then a lot of people are going to do it."