UPDATED 22:49 EST / DECEMBER 18 2014

NEWS

Uber suspends Portland operations as it tries to play nice with city lawmakers

uberUber Inc. has suspended its service in Portland, Oregon for three months as part of a deal with city lawmakers to eventually make the service legal.

Portland sued Uber December 8th after the ridesharing operator launched in the city the week before. In the suit, the city claimed that Uber was operating in violation of the City of Portland’s Private for Hire Transportation Regulations and Administrative Rule.

As part of the deal regulators have promised to work to revise rules around taxis that currently prohibit ridesharing apps. Of note is that Uber has stated that they would resume operations after three months whether or not new regulations have been passed.

The city council plans to launch a task January 14th with policy recommendations to be delivered April 9th, some three weeks after the deal with Uber ends.

“I believe that we should find a way for Uber to operate legally here,” Mayor Charlie Hales told the Wall Street Journal. “It’s a valid part of the new sharing economy that Portland embraces.”

Uber said in a statement that the company “is dedicated to curating and continuing a valuable and constructive relationship with Portland’s lawmakers, working to create a regulatory framework that works for everyone, not just us. Not just the taxi cabs. Not just the city officials. Everyone.”

“We’re eager to work with City and State leaders to bring the impact of the Uber platform to Portland and cut down on drunk driving, serve underserved communities, increase transit to small business and help drive the local economy.”

Uber claims that more than 10,000 rides have been booked in Portland since the service launched in the city, with some 500 new drivers signing up to provide service.


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