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Uber strikes deal with Portland authorities, will suspend service for three months

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Following a series of bans and arrests, Uber has finally understood the fact that compliance with laws isn’t such a bad thing after all. As a result of this late, yet welcome realisation, the company has reached an agreement with Portland authorities to suspend its service for three months, until new regulations are formed.

As per the agreement, Uber has agreed to suspend its service for three months, after which, Portland authorities will allow the app based cab renting service to initiate operations regardless of the framing of new regulations.

In an interview to Wall Street Journal, Portland Mayor Charlie Hales sound a lot softened on Uber, as compared to his previous, open challenges to the ride-sharing service. Mayor Hales said,

I believe that we should find a way for Uber to operate legally here, it’s a valid part of the new sharing economy that Portland embraces.

This agreement comes just two weeks after Portland authorities had banned the company from operating within the city by issuing a cease-and-desist order. The order came after Uber started its services within the city, despite already being tagged with the illegal status.

Uber’s commencement of operations two weeks ago had severely outraged the local transportation officials. Portland’s transportation commissioner Steve Novick had then told The Oregonian

They think they can just come in here and flagrantly violate the law ? This is really amazing. Apparently, they believe they’re gods.

However, with this new agreement, Portland regulators have considerably softened their tone, with most of them in favour of drafting regulations in order to make Uber operational.

Portland has rather been a fair ground for start-ups when it comes to compliance with regulations. Portland was one of the first cities to collaborate with apartment-rental site Airbnb in a ta collection dispute. The site then reached an amicable agreement with the authorities which finally allowed it to collect taxes on its website itself. However, unlike Uber, Airbnb had approached the city officials as soon as it started its operations.

This agreement will come as a major sign of relief for Uber, which recently face yet another controversy when one of its drivers was arrested for raping a young woman in Boston.

In most of the bans though, it has been Uber’s sheer disregard for the law which aggravated government and its officials. This agreement however, has made Uber realise the fact (hope so!) that an amicable solution with officials is all that’s required from its part, and it ain’t that difficult mate !


Editor-at-large and co-founder at The Tech Portal. He is a tech enthusiast with interests in new-age technology fields like Ai, Machine Learning, AR/VR, Outer Space and related stuff. Drop him a mail anytime, very reachable.


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