Portland sues Uber

The city of Portland, Ore., sued Uber on Monday and issued a cease and desist order calling for the ride sharing company to stop operation in the city. 

Portland is asking the court to declare that Uber is subject to its regulations and must comply with its safety, health and consumer protection rules. 

Those include permits that require background checks for drivers, proper insurance and vehicles that are properly inspected. 

The five-year-old company began operating in Portland last Friday. It now operates in more than 250 cities around the world and has faced a number of similar battles with cities around the country. 

"Taxi cab companies follow rules on public health and safety," Mayor Charlie Hales said in a statement. "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.”

Uber acknowledged the potential showdown in a blog post last week announcing its expansion to Portland. 

"Now it’s time to try and bring Uber everywhere – even the cities where we know it’s going to be a tough challenge," the company said at the time.

Last week, the city's transportation commissioner Steve Novick scolded the company and David Plouffe, the former Obama campaign manager who now leads policy and strategy for Uber. 

"Plouffe said, 'Well, you know we’re active in these markets and we’re providing a service and there is great demand in Oregon and blah blah blah,'" Novick told The New York Times about a phone call he had. "I said, 'Mr. Plouffe, announcing that you’re going to break the law is not civil.'"