UPDATED 23:05 EDT / DECEMBER 08 2014

NEWS

Portland C&Ds Uber, sues to stop unlicensed operation

uberxPortland, Oregon has decided it doesn’t want a piece of the ride-sharing revolution, sending a cease and desist (C&D) letter to the movement’s poster child, Uber Inc., at the same time suing the company to force it to stop operating in the city.

The C&D refers to Portland’s City Code Chapter 16:40 which regulates private for hire transportation in the city and in particular that such services are required to be licensed by the ordinance.

If you’ve followed Uber’s growth and related obstacles thus far across the U.S., you can guess the next part: Uber not only doesn’t have a license, it hasn’t bothered trying to get one.

The City demands that Uber cease operating immediately:

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. Please alert all Uber-affiliated drivers that they are to cease and desist.

Further to the C&D Portland has also filed suit to seek declaratory relief that Uber comply with city regulations.

The suit lodged with the Multnomah County Circuit Court seeks a ruling that “Uber is subject to and in violation of the City of Portland’s Private for Hire Transportation Regulations and Administrative Rules.” Further the suit asks for “a declaration by the court that Uber is subject to the City’s regulations” and that the “Court order Uber to stop operating in Portland until it is in compliance with the City’s safety, health and consumer protection rules.”

“Our main concern is public health and safety, because the state invested in the cities the responsibility to do that,” Mayor Charlie Hales said in a statement. “Beyond that, though, is the issue of fairness. Taxi cab companies follow rules on public health and safety. So do hotels and restaurants and construction companies and scores of other service providers. Because everyone agrees: good regulations make for a safer community. Uber disagrees, so we’re seeking a court injunction.”

The news from Portland just adds to a continually growing list of problems for the rideshare startup, the least of which is facing a criminal negligence charge in India after a driver raped a customer.

 


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