Uber announced the
launch of its ridesharing service in Portland at the end of last week, moving into Oregon's largest metropolitan area almost a month after coming to four other cities outside the area, including Hillsboro and Beaverton. However, the service hit a significant snag on the same day, running afoul of the Portland Bureau of Transportation (PBOT) and a city commissioner.
Within the city of Portland, taxi services are regulated by law, making it illegal for private for-hire transportation to operate without required permits. These laws were established in August 2012 to help address a problem with taxi services in the city, leading to regulations that require annual background checks, company licenses, vehicle inspections, identification plates and commercial insurance.
The problem is that Uber doesn't comply with any of the regulations, leaving its operation illegal in Portland. As such, City Commissioner Steve Novick -- who is in charge of the PBOT --
indicates that the city is going to crackdown on Uber drivers.
"There's nothing sharing about this so-called 'sharing economy' company: They want to profit in Portland without playing by the same rules as existing cab companies," said Novick. "People who pick up passengers for Uber in Portland should know that they are operating illegally, and could be subject to penalties. Public safety, fairness among competitors and customer service are our top priorities. Unlike permitted drivers, Uber drivers do not carry commercial insurance, putting Portland customers at great risk."
Portland Uber drivers face a number of
potential fines, starting with a $1,000 first offense for driving without the proper permit. Subsequent fees for the same offense jump up to $2,500 for the second citation and $5,000 for every one thereafter. Portland can also issue citations for code violations in a number of other areas against Uber or drivers, such lacking a company permit, plates, decals, insurance or items like fare violations or missing driver identification. When speaking about Uber drivers, Novick told
The Oregonian that the PBOT "will try to catch them and seek penalty," going as far as suggesting code enforcement officers setup rides to find violators.
"They think they can just come in here and flagrantly violate the law?" asked Novick when speaking about Uber's launch late Friday. "This is really amazing. Apparently, they believe they're gods."
Unfortunately, the debate over allowing Uber into Portland has turned into a mudslinging battle of public opinion. Portland Mayor Charlie Hales
took to Facebook to reiterate that Uber's tactic of launching then asking for forgiveness later is still illegal in the city, leaving Portland to enforce regulations against the company and its drivers. The city is working on examining taxi regulation to protect the safety of consumers and drivers, with Novick mentioning that the PBOT is open to new ideas.
Even if Uber were to gain entry into Portland through regulation changes, Hales and Novick don't seem keen on the company operating within the city limits, due to its actions. Hales's post on Facebook says Portland continues to work with Lyft to "embrace that economy" and technology, but begrudgingly adds that Uber can be a part of that discussion. Novick told the
New York Times that he would be inclined to let Lyft operate well before Uber, adding that "Lyft seems like a respectable company, and Uber seems like a bunch of thugs."
Uber spokeswoman Eva Behrend said on a
blog post that the company has been engaged with Portland's government for more than a year. Behrend played up the demand for Uber's services, stating that "more than 27,000 residents have indicated they're looking for a safe, reliable, and hassle-free ride."
T
o put that in perspective, less than 500 taxi licenses in Portland are issued, leaving many areas without adequate service or facing long delays. The claimed 27,000 residents seeking the service is substantial, but it's a mere fraction of Portland's more than 600,000 population, according to 2013 US Census
estimates.
Oregon could do with more jobs, as it currently holds the ninth highest unemployment rate in the country, at seven percent as of October 2014, per the
US Department of Labor.
Behrend adds that Uber is trying to "cut down on drunk driving, serve underserved communities, increase transit to small business and help drive the local economy." While "nearly 500 drivers" are looking forward to being paid for being Uber drivers, Behrend neglects to mention that Uber is notorious for paying drivers low wages -- in some cases
below minimum wage due to the fees taken by the company, types of fares, hours worked, and the often high cost of operating as an independent contractor. In Uber's defense, its fare structure varies widely depending on the time of operation, location, date, and weather conditions.
For now, the company continues to operate in the city. While Uber has run into numerous issues across the globe, it's possible that a resolution can be reached with Portland's government in order to come up with new, appropriate regulations. Otherwise, Uber could face a battle similar to the shut down it's fighting in Nevada.
"We have told Uber and Lyft that they are welcome to offer ideas for regulatory changes," said Novick. "Uber has chosen instead to break the law."
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