In many ways, Airbnb and Uber are quite similar. Both are fast-growing, San Francisco-based “sharing economy” startups that allow people to make money off their own possessions — in this case, cars and homes.
Yet in Portland, Ore., one company has been welcome. The other, well, not so much.
On Friday evening, Uber marched into Portland and began driving citizens around town without proper permitting required by taxi regulations. In response, the city launched a sting operation this past weekend and documented Uber drivers who were using their own vehicles to offer rides. Then, on Monday, the City of Portland issued a cease-and-desist order to Uber and proceeded to sue the company just hours later.
Portland’s message to Uber: Follow our rules, or get the hell out.
This is worth comparing to the city’s handling of Airbnb, which lets people rent out their homes and apartments in exchange for payment. Similar to Uber, Airbnb began operating in Portland without first consulting city officials to iron out proper regulations. Just like Uber, Airbnb was doing business in Portland without following rules required of other competitors.
Portland’s regulators knew this and began sending warning letters to Airbnb hosts. However, from there, Portland didn’t sue Airbnb or issue a cease-and-desist letter. Instead, the city worked with Airbnb to create new rules for short-term rentals that effectively legalized the service. Hosts are now required to obtain a permit, although it seems not many have done so. Airbnb also agreed to collect lodging taxes from users who rent rooms in Portland.
In between all the political negotiating — Airbnb has spent almost $50,000 lobbying Portland City Hall — Airbnb announced plans to open up their North American operational headquarters in downtown Portland, with room for up to 160 employees.
Then, Airbnb picked Portland as its first destination for a new long-term initiative called “Shared City.”
“Portland has a history of being a leader when it comes to urban innovation,” Airbnb CEO Brian Chesky wrote in a blog post announcing the initiative. “Portland has long been a great home for entrepreneurs and has led the way in promoting green tech, conservation, and co-working spaces.”
Throughout the entire process, Mayor Charlie Hales has publicly embraced Airbnb in Portland while leaders in other cities have been cautious of the company.
“In Portland, officials have instead been welcoming — none more so than Mayor Charlie Hales,” the Willamette Week wrote in July.
So, why work with Airbnb but not Uber? We’ve reached out to Mayor Hales and will update this post when we hear back.
