Uber's hardly been quiet about its lust for Portland—ardor that was reciprocated this week when several business leaders sent a letter to city council demanding a refreshing of the city's taxi rules so the ride-sharing business could swoop in without risking fines and punishment.

The city's transportation bureau, meanwhile, hasn't been so hot to trot. Same for the city's transportation commissioner Steve Novick.

Reports are coming in, citing Uber officials, that the company is forcing the issue—launching its service in Portland over the objections of city officials. In a statement issued a few minutes ago, the Portland Bureau of Transportation reacted to those reports, by accusing Uber of preparing to "start offering taxi service in Portland illegally on Friday night." And Novick, in that statement, has promised to level "civil and criminal penalties against Uber and its drivers for operating without required permits and inspections." (The Oregonian's Joseph Rose has taken credit for breaking the news about Uber's insurgency to city hall.)

He also cast some aspersions at Uber's business model, which it's already taken to the city's suburbs in a bid to make its arrival here seem inevitable. Uber, based in San Francisco, offers an app that allows people looking for rides to connect with private drivers looking to provide rides.

It promises efficiency—and it's become a popular part of the growing (and wealthy-favoring) "sharing economy," alongside outfits like Airbnb. But it's also intensely controversial.

Uber's prices "surge" during peak hours, which can sometimes surprise riders (like a woman who paid almost $400 for a ride on Halloween). Their drivers also are largely unregulated, at least compared to taxis and licensed towncar operators. The company's also battling labor and PR issues.

“There’s nothing sharing about this so-called ‘sharing economy’ company: They want to profit in Portland without playing by the same rules as existing cab companies,” Novick said. “People who pick up passengers for Uber in Portland should know that they are operating illegally and could be subject to penalties. Public safety, fairness among competitors and customer service are our top priorities. Unlike permitted drivers, Uber drivers do not carry commercial insurance, putting Portland customers at great risk.”

PBOT's statement goes on to highlight the fines any Uber drivers operating illegally in Portland might face.

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The bureau's in the midst of studying the city's taxi regulations, in part because of the clamor for services like Uber. A recent study detailed by the Oregonian showed Portland's demand for taxis spiking on weekends and going unfulfilled. The city's typically been reticent to flood the market with permits. It took a battle and a lengthy study, back in 2012, for newcomer cab outfit Union Cab to win permission to operate in Portland.

Commissioner Novick is convening a task force to reexamine existing taxi regulations and see if those regulations should be restructured while protecting consumers and drivers.

“We have told Uber and Lyft that they are welcome to offer ideas for regulatory changes,” Novick said. “Uber has chosen instead to break the law.”

KGW is reporting that the app went live at 5 pm, citing regional manager Brooke Steger.

Uber's regional manager Brooke Steger said the app began working at 5 p.m. and drivers were able to immediately begin offering rides.

The City of Portland, which previously said it wouldn't change its regulations to allow Uber to operate like cabs, has not yet altered the rules. Uber launched anyhow.

"I don't think we're going against the city's wishes," Steger said. "We hope the city embraces this and listens to their constituents, the people of Portland and drivers partnering with us."

The O's report says Mayor Charlie Hales almost immediately called Uber after Rose called for comment the ride-sharing company's plans.

Within minutes, Mayor Charlie Hales had David Plouffe, one of President Barack Obama's most high-profile campaign operatives and now an Uber vice president in charge of strategy, on a speaker phone, Novick said. "I told him that if they're just going to come in and flagrantly violate the law, we'll throw the book at them."

Brooke Steger, Uber Northwest general manager, said the city's threats shouldn't dissuade its hundreds of local drivers from trying to make a living. "We are 100 percent behind the drivers and we support them every step of the way," Steger said. "We hope the city doesn't take that kind of action.

Read PBOT's full statement after the jump.

The Portland Bureau of Transportation has learned that transportation company Uber has said it will start offering taxi service in Portland illegally on Friday night.

City Commissioner Steve Novick, who oversees PBOT, said the City is prepared to issue civil and criminal penalties against Uber and its drivers for operating without required permits and inspections. The City of Portland requires permits for drivers and companies that offer taxi or executive sedan service within the city limits.

“There’s nothing sharing about this so-called ‘sharing economy’ company: They want to profit in Portland without playing by the same rules as existing cab companies,” Novick said. “People who pick up passengers for Uber in Portland should know that they are operating illegally and could be subject to penalties. Public safety, fairness among competitors and customer service are our top priorities. Unlike permitted drivers, Uber drivers do not carry commercial insurance, putting Portland customers at great risk.”

Portland and Vancouver, Wash. are the only cities in the metropolitan area that regulate taxi companies. Uber recently started operating in Vancouver without permits and in other area cities that do not regulate taxis.

Since the City Council moved taxi regulation from the Revenue Bureau to PBOT, effective July 1, Commissioner Novick and transportation officials started a top-to-bottom review intended to update the City’s taxi and executive sedan regulations.

Commissioner Novick is convening a task force to reexamine existing taxi regulations and see if those regulations should be restructured while protecting consumers and drivers.

“We have told Uber and Lyft that they are welcome to offer ideas for regulatory changes,” Novick said. “Uber has chosen instead to break the law.”

It is illegal for motorists to pick up passengers for a fee in the Portland city limits without proper permits. Taxis that pick up passengers outside of Portland may drop off those passengers in Portland without a permit.

Anyone in Portland can use the smartphone app Curb to call taxis from Broadway and Radio Cab, which are two of the largest permitted taxi companies in the city.

The three most common violations of City Code that city enforcement officers find, and which Uber and its drivers may be in violation of, are:

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The Limited Passenger Transportation and Taxi Driver Permit requirements ensure the public that drivers have passed annual City-required annual background checks.

The Taxi Company Permit requirement ensures the public that licensed companies have appropriate commercial insurance that will cover passengers in the event of a crash, and that the companies’ drivers have annual City-required background checks and inspected vehicles.

The Taxiplate display requirement calls for posting of a metal plate on the vehicle with an identification number. It helps customers and enforcement officers identify permitted operators.