Uber Faces Legal Action After ‘Illegal Startup’ In The City of Portland
Talk about being in trouble. After being kicked out of the Netherlands and being banned in New Delhi, India, the US ridesharing and taxi service Uber is now being sued by the city of Portland. Uber launched its services in Portland on Friday but it seems they did so illegally, the lawsuit stated that the company in direct violation of the rules and regulations of the transportation bureau and they filed to cease company operations immediately.Uber's recent dilemma @Credit URL
Uber told to cease operations immediately
Transportation Director Leah Treat issued a Cease and Desist order on Monday to Uber in which the following order was cited;
“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.”
The dispute arose from the fact that Uber did not get its for hire vehicles licensed. The city has laws and until Uber follows them they are not allowed to operate within city limits. Uber on the other hand seems to be least intimidated
"We will continue to operate in Portland," said Uber spokeswoman Eva Behrend.
According to Uber, in a statement,” it has received tremendous support from the public - both drivers and riders of Portland”. The company also claims to have received 10000+ signatures in a petition in support of Uber and wishes that the city will listen to its residents who want a cutting edge taxi service like the one provided by Uber. To stop the company from its operations the bureau of transportation has been running sting operations, each time a driver is busted by a city official they face a pretty hefty fine and unless Uber is willing to pay the fine I don’t think drivers will be very enthusiastic to pay sums of up to $2,250 from their own pockets.
This is not the first time Uber has refused to accept a legal demand infact they have a history of ignoring more than a few. With that said how long will the $40Billion valued company last? In my opinion this will make the company boom, remember the cities that tried to file legal action against the internet to save the postal service and eventually led to the popularity of the internet.