NEW: Portland Sues Uber for Operating Illegally in City Limits

Monday, December 08, 2014

GoLocalPDX News Team

The City of Portland announced Monday that it would sue controversial ridesharing company Uber for operating inside city limits without licenses or permits.

The company that's been disrupting the traditional taxi business model around the world has been circling the Portland market all year. Since January, Uber has been operating in five of Portland’s suburbs and advertising for “Portland Drivers” on Craigslist.

After weeks of negotiating, Uber began operating inside Portland on Friday night. The Portland Bureau of Transportation threatened to fine Uber if it continues to flout the law. But on Monday, the city said they had been unable to catch an Uber in the act. The lawsuit was announced in the late afternoon after a cease and desist order had been issued.

“The lawsuit also asks the Court to order Uber to stop operating in Portland until it is in compliance with the City’s safety, health, and consumer protection rules,” stated PBOT spokesman Dylan Rivera in a media statement.

The lawsuit cites the cease and desist order issued to Uber by the city on Monday.

“I am hereby directing that Uber Technologies Inc…. or any other Uber affiliate entity immediately cease and desist operating within the City of Portland until such time as appropriate permits are obtained and Uber is in full compliance with the requirements of Portland City Code Chapter 16.40,” wrote Transportation Director Leah Treat. “Please alert all Uber-affiliated drivers that they are to cease and desist.”

Recently, several dozen companies called on City Hall to allow Uber to operate in the city, which they said was the largest in the nation without a rideshare company.

Vancouver and Portland are the only cities in the metropolitan area to regulate taxi cab companies. Uber has been operating legally in the Portland suburbs for several weeks and without permits in Vancouver.

“We remain committed to working with Portland’s leaders to create a permanent regulatory framework that affords Portlanders the flexibility and innovation offered by Uber,” Uber stated in an email.

Uber drivers over the weekend said they weren’t concerned about the city cracking down on their services.

Uber launched operations in Portland on Friday evening after being told by the city it would face fines for doing so. The Portland Bureau of Transportation issued a public warning that the company and its drivers would face hefty fines of up to $5,000 after second offenses.

"So far what we've been doing is requesting a ride on the Uber app," Brian Hockaday, a policy adviser for Commissioner Steve Novick, said. "That within itself gives us the documentation that we need to impose any fines against the company, as well as the driver."

Hockaday said that initially, the city only plans to issue warnings to Uber drivers.

As of 4 p.m. Monday, the city had issued five warnings, Hockaday said.

“We’re certainly aware, because Uber has told us, that there are many more drivers operating throughout the city,” Hockaday said. "We'll continue to be doing enforcement actions."

The city has initiated a pilot program with the Curb app (formerly known as Taxi Magic), PBOT Spokeman Dylan Rivera said.

“We’re looking at a comprehensive review of our regulations, but it will take months— not hours,” Rivera said.

In a Dec. 8 email to customers it gained over the weekend, Uber stated that it will be petitioning the city to allow it to operate in Portland. It also claimed that thousands of Portlanders have signed up to be UberX drivers.

By 3:50 p.m. Monday, the petition had gathered approximately 5,515 signatures, just over half of its 10,000 signature goal.

“The bottom line is this,” the petition stated. “Drivers deserve an opportunity to earn a living and Portlanders deserve a safe, hassle-free transportation option. We will continue to fight for you to have that right until it’s a reality.”