City of Portland sues Uber in bid to shut taxi service down

http://www.theguardian.com/technology/2014/dec/09/portland-sues-uber-taxi-services-launches

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The city of Portland, Oregon, has filed a suit to shut down taxi service Uber just days after the controversial company launched there.

The lawsuit, filed late Monday, was the latest in a series of woes for the taxi app firm. On Tuesday a judge in Madrid, Spain, ordered the company to close its operations as the court considers a suit filed by the Madrid Taxi Association.

The company launched its lower-cost UberX service in Portland on Friday even as city officials declared it illegal. Until then, Portland had been the largest US city without Uber’s service.

“Our main concern is public health and safety,” mayor Charlie Hales said in a statement announcing the lawsuit. “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 lawsuit asks the court to confirm Uber is subject to the city’s regulations and to halt its operations until it is in compliance. City commissioner Steve Novick said the city is prepared to issue civil and criminal penalties against Uber and its drivers for operating without required permits and inspections.

Portland prides itself on its progressive attitudes and city officials cited Uber’s “surge” pricing – when the company can double or even triple fares during peak travel periods, – and lack of facilities for disabled passengers as major concerns.

“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.”

Eva Behrend, a spokeswoman for Uber, said nearly 7,000 residents had signed a petition in support of Uber four hours after its launch. “Their support illustrates why it’s time to modernize Portland transportation regulation,” she said.

The company, now valued at $41bn, has clashed repeatedly with city and government officials around the world. This week the Indian federal government called for state’s to clamp down on Uber and its rivals following a ban in New Delhi. That ban came after a passenger in the capital city accused an Uber driver of raping her.

The company’s services have come under fire in other countries with bans in place in Belgium, France, Germany and the Netherlands, where Uber’s European headquarters are based.

In the US, Uber and chief rival Lyft have been hit with cease-and-desist orders in Pennsylvania and Virginia. Uber shut its service in Nevada last month after after a district judge issued a restraining order against the ride-sharing service. The order followed a petition from the Nevada transportation authority that argued Uber’s unregulated business model endangered passenger safety.

While city and government officials have independently called for a crackdown on the company, Uber has also faced intense lobbying from established taxi service groups.

One of New York’s largest taxi driver groups called for rival Uber to have its license suspended last month after reports that it has been abusing access to data about its passengers’ rides.