A coalition of Portland business, tourism, sports, and arts organizations is urging city lawmakers to reject a proposed rideshare take-rate mandate, arguing the measure could increase transportation costs, reduce service availability, and undermine the city’s economic recovery.
The Portland Metro Chamber and the We Play for Portland Coalition submitted a letter to the Portland City Council opposing a proposal that would limit Uber and Lyft to retaining 20 percent of passenger fares after fees, requiring at least 80 percent of fares to go to drivers.
The coalition includes Travel Portland, the Portland Trail Blazers, Portland Timbers, Sport Oregon, Oregon Symphony, Oregon Ballet Theatre, and Portland Opera.
“The organizations represented by We Play for Portland are foundational to the region’s identity and economic engine,” the coalition wrote. “Together, they generate millions of dollars in annual economic activity, draw visitors from across the country, and support thousands of jobs in hospitality, retail, and entertainment.”
According to reporting by The Oregonian, Councilors Steve Novick and Elana Pirtle-Guiney are advancing the proposal as a way to increase driver earnings. Supporters argue rideshare drivers currently earn too little after accounting for expenses and that Uber and Lyft retain an excessive share of passenger fares.
Under the proposal, ride-hailing companies would be limited to retaining 20 percent of a passenger fare after fees, with at least 80 percent going to drivers. According to The Oregonian, Novick’s office estimates Uber and Lyft currently retain an average of about 40 percent of fares, and sometimes substantially more, after fees and expenses are deducted.
Allison Ford, senior public policy manager for Uber Technologies, warned in comments reported by Medford Business Daily that the proposal could make rideshare service economically unsustainable.
“The proposed take-rate mandate would make rideshare economically unworkable in Portland,” Ford said. “The result would be materially higher prices, lower demand, and fewer trips for drivers.”
Uber and Lyft have strongly opposed the proposal.
According to The Oregonian, Uber has warned that a 20 percent cap on its take rate could force the company to substantially raise prices, reduce service, or leave the Portland market altogether.
“A rigid cap would force Uber to operate at a loss on every trip or raise fares significantly,” the company said in a statement quoted by The Oregonian. “The math simply doesn’t work and would result in fewer reliable transportation options for Portland riders and the loss of dependable flexible earning opportunities for drivers.”
In their letter to city councilors, coalition members argued that reliable rideshare service is critical to Portland’s economy and cultural institutions, particularly as the city seeks to revitalize downtown and attract visitors.
The groups said many venues depend on rideshare services because parking is limited and many events occur during evenings and weekends when public transit options are less available.
The coalition warned that higher rideshare costs or reduced service could lead to lower attendance at sporting events, concerts, and performances, decrease tourism spending, complicate staffing and event logistics, and reduce transportation options for residents and visitors.
The organizations also raised public safety concerns, arguing that fewer rideshare options could increase the risk of impaired driving and limit safe late-night transportation.
“If Uber and Lyft were to scale back or cease operations in Portland, the ripple effects would be immediate and significant,” the coalition wrote.
The coalition pointed to Seattle’s experience with app-based worker compensation mandates as a cautionary example.
“We have seen warning signs from other jurisdictions that have tried similar policies,” the coalition wrote. “For example, following the implementation of a rideshare earnings standard in Seattle, prices reportedly rose by approximately 40 percent, and demand dropped sharply.”
While Seattle’s PayUp ordinance primarily applies to app-based delivery services rather than rideshare trips, opponents of Portland’s proposal argue it demonstrates how compensation mandates can increase costs and reduce demand in platform-based transportation markets.
In a report published on its corporate website, DoorDash said that customer fees in Seattle rose 93 percent compared with nearby Portland after the law took effect and estimated consumers placed roughly 900,000 fewer orders over a five-month period than otherwise would have been expected. The company also reported longer wait times between delivery offers and lower hourly earnings when measured across all time spent on the app. Grubhub similarly reported that delivery partners were waiting an average of 102 minutes between orders after implementation of Seattle’s law, a 437 percent increase from previous levels, while tips fell by 26 percent and overall order volume declined.
Independent researchers have also examined Seattle’s experience. A study by Carnegie Mellon University researchers published through the National Bureau of Economic Research found that Seattle’s minimum-pay requirement increased pay per delivery task but did not significantly increase drivers’ overall monthly earnings. According to the study, higher pay per task was largely offset by fewer completed deliveries, reduced tips, and increased idle time between jobs.
“As more and more jurisdictions consider adopting minimum pay policies for platform-based gig work, it is important to understand who bears the benefits and costs of such regulations,” study co-author Brian Kovak, a professor of economics and public policy at Carnegie Mellon, said in a statement.
The Portland Metro Chamber and We Play for Portland coalition argue Portland could face similar outcomes if the proposed take-rate mandate substantially increases rideshare costs.
The groups noted that Portland’s rideshare market has already weakened in recent years. According to figures cited by The Oregonian, trips in the Portland region are down by about one-third since 2019, active driver numbers have fallen by more than 30 percent, and average wait times have more than doubled.
“Rideshare is not a luxury; it is essential infrastructure,” the coalition wrote.
While expressing support for fair compensation for drivers, the coalition urged city officials to conduct a transparent, data-driven review before moving forward.
“We urge you to carefully consider the broader economic and community impacts of these proposals and to prioritize policies that support access, affordability, and economic vitality,” the letter states.
