News Release: City of Portland sues Uber for operating illeg

News Release: City of Portland sues Uber for operating illegal, unregulated transportation service
(Dec. 8, 2014) The City of Portland has filed suit against Uber Technologies Inc. in Multnomah County Circuit Court, after documenting that the California-based company started operating private-for hire transportation services in the city.

The lawsuit seeks declaratory relief that Uber is subject to and in violation of the City of Portland’s Private for Hire Transportation Regulations and Administrative Rules. The City’s lawsuit is asking for a declaration by the court that Uber is subject to the City’s regulations. 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.

Transportation Director Leah Treat on Monday morning issued a Cease and Desist Order to Uber. The order was cited in the lawsuit.

“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,” Treat wrote. “Please alert all Uber-affiliated drivers that they are to cease and desist.”

“Our main concern is public health and safety, because the state invested in the cities the responsibility to do that,” Mayor Charlie Hales said. “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.”

City Commissioner Steve Novick, who oversees PBOT, said the City is prepared to issue civil and criminal penalties against Uber and its drivers for operating without required permits and inspections. The City of Portland requires permits for drivers and companies that offer taxi or executive sedan service within the city limits.

“If Uber thinks there should be no maximum price on what they charge Portlanders, they should make their case to the Portland City Council,” Novick said. “If Uber thinks taxi companies shouldn’t have to serve people with disabilities, they should make their case. If Uber thinks taxis should not have to have proper insurance in case of a crash, they should tell us why we should allow that.”

Uber drivers accepted and then later cancelled two rides requested by Portland Bureau of Transportation enforcement officials on Friday night. Uber drivers provided three rides to City enforcement officials on Saturday night. Uber has widely publicized that it was operating in Portland over the weekend.

The Transportation Bureau issued two civil penalties to Uber on Monday, one for operating without a company permit and another for operating without a vehicle permit.

As the City documents Uber’s unpermitted operations in Portland, the Bureau will issue warnings to Uber drivers and penalties to the company. Drivers found to be repeatedly operating without a permit may be subject to civil and criminal penalties.

An attorney representing the City of Portland also issued a Cease and Desist Order Monday to Uber for unauthorized use of the image of the historic “Portland, Oregon” sign in Old Town in its advertising. The sign’s image is a trademark registered with the State of Oregon. If Uber does not cease all commercial use of the sign by 5 p.m. Thursday, Dec. 11, the City is prepared to seek a court order, damages and attorney’s fees.

The Transportation Bureau encourages the public to report illegal taxi operations, and complaints about any private for hire transportation provider to 503-865-2486 or by email to regulatory@portlandoregon.gov

See attachments: • CityofPortlandvUber • CityofPortlandCeaseandDesist • TrademarkCeaseAndDesist • FrequentlyAskedQuestions

Background on Private for Hire Transportation in Portland Portland and Vancouver, Wash. are the only cities in the metropolitan area that regulate taxi companies. Uber recently started operating in Vancouver without permits and in other area cities that do not regulate taxis.

Since the City Council moved taxi regulation from the Revenue Bureau to PBOT, effective July 1, Commissioner Novick and transportation officials started a top-to-bottom review intended to update the City’s taxi and executive sedan regulations.

Commissioner Novick is convening a task force to reexamine existing taxi regulations and see if those regulations should be restructured while protecting consumers and drivers.

It is illegal for motorists to pick up passengers for a fee in the Portland city limits without proper permits. Taxis that pick up passengers outside of Portland may drop off those passengers in Portland without a permit.

Anyone in Portland can use the smartphone app Curb to call taxis from Broadway and Radio Cab, which are two of the largest permitted taxi companies in the city.

The three most common violations of City Code that city enforcement officers find, and which Uber and its drivers may be in violation of, are:

Code Section Requirement 1st Offense 2nd Offense Subsequent Offenses 16.40.090 A. LPT and Taxi Driver Permit $1,000 $2,500 $5,000 16.40.150 A. Taxi Company Permit $1,500 $2,500 $5,000 16.40.190 B. Taxiplate $1,250 $2,500 $5,000 Full City Code Citation: http://www.portlandonline.com/auditor/?c=28593#cid_408153

The Limited Passenger Transportation and Taxi Driver Permit requirements ensure the public that drivers have passed annual City-required annual background checks.

The Taxi Company Permit requirement ensures the public that licensed companies have appropriate commercial insurance that will cover passengers in the event of a crash, and that the companies’ drivers have annual City-required background checks and inspected vehicles.

The Taxiplate display requirement calls for posting of a metal plate on the vehicle with an identification number. It helps customers and enforcement officers identify permitted operators.

We've also put together a collection of frequently asked questions about taxi and other private for hire transportation regulations in Portland.

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