The US city of Portland, Oregon, has sued ride-sharing startup Uber, saying it was operating illegally, officials said Monday.
The suit also asked the court to order the service to stop operating in Portland until it is in compliance with city rules.
"Uber
is subject to and in violation of the city of Portland's Private for
Hire Transportation Regulations and Administrative Rules," the suit
said.
Uber is the most prominent of many new smartphone-dependent
car services seen as bypassing strict regulations faced by licensed cab
drivers.
"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 company sought to play up widespread public support.
"Uber
has received a tremendously warm welcome from riders and drivers in and
around Portland. We appreciate the way residents have welcomed Uber,"
said company spokeswoman Eva Behrend.
She said that almost 7,000 Portland residents had signed the petition in support of Uber in just a few hours.
Uber
said last week that it had raised a fresh $1.2 billion (roughly Rs. 7,400 crores) in funding,
giving the popular ride-sharing startup a reported value of some $40
billion (roughly Rs. 2,46,960 crores).
Founded in California in 2009, Uber is best known for its
smartphone app that lets people who need a ride connect with local
drivers. The app uses GPS to put the user in contact with the nearest
driver. Uber charges a commission for each ride.
Its fast
expansion has riled taxi drivers in countries where it operates, since
they often face significant rules and regulations, and attendant costs.
Uber
has also faced scrutiny following negative comments about the news
media from a top executive and revelations that it offered a "God view"
of customers that could allow spying. The company hired experts to
conduct a privacy review.