On Monday, the City of Portland filed a lawsuit against the ride sharing service, Uber, for operating illegally. The case has moved from the Multnomah County Circuit Court to federal court per Uber’s request. Accommodating Portland’s rules for Uber would cost more than $100,000 and change their business model completely.
The San Francisco based ride sharing company launched in Portland on Friday evening without the city’s approval.
The business model of Uber does not comply with city law because they should be classified as a Town Car company if running in Portland. However, Uber works more like a cab company. Since Uber’s business model does not comply with the city’s laws, the City of Portland declared in the lawsuit that they must follow city regulations before they can operate in Portland.
Many Portlanders are supporting Uber and hope to see it operate legally in the city soon.
Other lawsuits in California have also been filed against Uber about them alleging false and misleading statements to consumers. Another lawsuit said Uber refused to comply with reasonable regulations required by the laws in California.