While ride-hail phenoms Uber and Lyft face sometimes violent opposition across the globe, the city of Portland, Oregon has laid out the welcome mat.

A 3-2 vote by the Portland City Council in December allows the ride-hail companies to operate under permanent transportation laws after six months of temporary regulations.

The regulations require transportation network companies (TNCs) to provide trip data to the city, conduct background checks on drivers, and offer minimum levels of insurance, among other mandates. There are also no longer fare restrictions and driver caps for taxi companies.

“Ride-sharing has a permanent home in Portland, and we couldn’t be more thrilled on behalf of the thousands of riders and drivers who depend on safe, reliable rides,” said Uber Portland GM Bryce Bennett. “Our thanks go out to the many Portland citizens and the City Council who made ride-sharing a reality.”

Lyft echoed the sentiment. “We want to thank the City Council for listening to the thousands of consumers, drivers, business and community leaders who spoke up in support of ridesharing during this inclusive process,” said a Lyft statement. “The city’s pilot program demonstrated that consumers benefit from Lyft and the Council’s approval guarantees Portland residents and visitors a safe, affordable way to get around the Rose City. We’re excited to see Lyft Portland continue to grow and thrive.”

Radio Cab General Manager Steve Entler wrote an op-ed for the Portland Tribune, slamming the city.

“The regulations have been carefully crafted to give Uber everything it demands. Concurrently, regulations for other segments of the private for hire transportation (PFHT) industry have been modified to feign fair and equal, even though some don’t make any sense.

“Uber already has an enormous advantage over Portland-based PFHT companies, but the proposed code changes extend the advantage even more while giving little thought to the potential harm that they place on the public, or the unfairness that is condoned and promoted by the Portland City Council, the Portland Bureau of Transportation, and biased city staffers,” wrote Entler.

The December vote ended 12 months of negotiations between the city and Uber which included the company suspending operations while the city put together the new regulations.
Portland’s Department of Transportation conducted a study of the market last year and found that in less than six months of operation Uber and Lyft had captured 60 percent of the for-hire market in Portland.

Portland DOT said total ridership among taxi companies decreased by 16 percent while Uber and Lyft saw a 125 percent increase.

Having TNCs as a transportation option also encouraged more people to ditch their own cars. Between May and August, overall for-hire ridership in Portland increased by 40 percent with more than 1 million trips provided.

“This increase can reasonably be attributed to several factors,” the report notes. “Most notably, these numbers strongly suggest that prior to the PFHT Innovation Pilot Program, consumer demand for paid transportation services far outpaced the available supply of taxicabs in Portland. Four months into the pilot, aggregated ridership data suggests that consumer demand is being better served.”

Portland Mayor Charlie Hales and former Uber Senior Vice President of Policy and Strategy David Plouffe met last year to negotiate a deal.

The two agreed to a pilot program than launched in May of 2015. Plouffe said that Uber helps fill an unmet need in Portland’s transportation system, particularly for people whose only option to get around was to drive their own vehicle.

“What Uber and services like it have provided is an equality of transportation,” he said. “No matter where you live in the city, you can press a button.”

The issue, however, is not fully resolved. The Oregon Supreme Court recently ruled that taxi drivers are employees, not contractors, under state law. The decision could potentially increase both the tax burden and benefits liability associated with the ride-hail operations in Oregon – expected to raise the cost for all consumers.

The second issue at play is a decision in Seattle where the city council voted to provide both TNCs and taxi drivers with the ability to bargain collectively. The decision could have a ripple effect and create new barriers for the industry.

Uber and Lyft dropped their prices in February, which is having an impact on drivers and their ability to earn.

Portland drivers are complaining they need to work longer hours and pay more for gas to keep up. Drivers are discussing forming a union.