Eugene Becomes Uber's Latest Testing Ground For New Strategy: Skip Town

The Register-Guard reported that a hearings official ruled to fine the ride-hailing company $1,500 per day for violating city code and upheld $66,000 in civil penalties Uber accrued since February for operating without the proper license.

Instead of digging in its heels, Uber shrugged, announcing on its blog that it made the "difficult decision to pause operations in Eugene starting Sunday.”

The move to pull out of Eugene may by the latest in what Slate reports is becoming standard in Uber’s playbook: When a city imposes regulations, skip town and wait for public outcry to help city officials change their minds.

From Slate:

As Uber campaigns for control of the global ride-hailing market, a unique skirmish is playing out in San Antonio. On Tuesday, Uber announced on its blog that it would mark its first anniversary in San Antonio by suspending operations there after April 1. “City officials have created a regulatory climate that makes it impossible for us to meet the high standard of service that riders from over 170 cities across the U.S. have come to expect,” Uber’s blog post stated. “By adopting these rules, San Antonio officials have eliminated thousands of jobs and a safe transportation alternative from their city.”

That Uber is facing regulatory scrutiny from local officials is nothing new. But the way it’s responding in this case is notable. Typically, Uber deals with unfriendly regulations by ignoring them and brashly continuing to operate. In this case it’s taking the opposite tactic. Essentially, Uber is abandoning San Antonio in protest until the city adopts regulations that it finds more palatable. And the company is betting that with the right amount of politicking plus some good ol’ fear of missing out, it can get the people of San Antonio to succeed in changing local policies where its own representatives failed.