Local Regulations Prompt Uber to Stop Service in Alabama City

January 30, 2015

The ridesharing service Uber has left Auburn, Ala. in its rearview mirror.

The Opelika-Auburn News reported that the popular service that lets users book rides using a mobile app sent emails to drivers and customers last week announcing that it was halting service in Auburn.

William Guernier, Uber’s general manager for regional expansion, blamed the city of Auburn for requiring Uber to operate under “burdensome regulations that disregard our innovative business model.”

On Jan. 6, city officials passed an ordinance placing companies like Uber under the same rules required for taxi cabs. They include requirements for commercial insurance, paying city licensing fees, signage identifying vehicles and mandatory background checks for drivers.

Uber says its service shouldn’t be treated the same as taxis because its drivers use their personal vehicles.