Uber Opts To "Pause Operations" In Eugene, But Promises "We'll Be Back"

Uber—a San Francisco-based ride-sharing company waiting to resume Portland service—on Sunday stopped offering rides in Eugene, saying city regulations forced the company to "pause operations."

"When the Eugene City Council voted to apply outdated code to Transportation Network Companies like Uber, they created a regulatory climate that makes it impossible for the small businesses that partner with Uber to thrive and meet the high standard of service and safety residents have come to expect," wrote Brooke Steger, general manager for Uber's Pacific Northwest region.

In an April 3 letter to Eugene Mayor Kitty Piercy and the rest of the city council, Steger cites the city's requirement that transportation network company (TNC) drivers carry $1.3 million in insurance coverage at all times as a deciding factor in Uber's decision to halt business operations. This level of insurance coverage would apply to Uber drivers who have the app on (are available for hire) whether the driver has accepted a ride request or not.

"It’s unfair to our riders who rely on a consistent service, and our driver partners whose jobs are sacrificed, when jurisdictions create a hostile environment that stifles business growth and innovation," Steger wrote on Uber's blog page. "By adopting these rules, Eugene officials have eliminated hundreds of jobs and a safe transportation alternative for their city."

Other Eugene rules that Uber refused to comply with include requiring Uber drivers to undergo background checks and vehicle inspections by the city.

"It is our sincere hope that city leaders will meet us at the table with a compromise that ensures that the people of Eugene can continue to count on safe and reliable options to connect them to the people and places that they love," Steger wrote. "When that time comes, we’ll be back."

The company is gearing up to resume service in Portland this month, following a three month hiatus while a task force rejiggered city code to allow TNCs to operate on an even playing field with traditional taxis.

Portland Bureau of Transportation's Private for-Hire Innovation Task Force on Thursday will brief the city council on their recommendations—which include lifting all restrictions on the number of permits the city will issue and imposing no price regulations on TNCs—that would guide Uber's operations within Portland during a 120-day pilot period.