Zahid Arab, public policy and communications manager for Uber, said that SB 1166 would make ridesharing significantly more expensive for consumers, becoming the most expensive standard ever placed on non-urban areas.
Arab said, 'We have seen what happens under similar policies. In Seattle, after a comparable law was enacted, rider fares jumped by 40%. The number of trips dropped roughly 50% lower than in the rest of the US and drivers' earnings fell behind. If Oregon adopts this current bill, we expect similar, if not more severe, consequences."
Uber testified before the Oregon Senate Committee on Rules that SB 1166 would significantly increase rideshare costs, particularly in non-urban areas. According to Uber, the proposed earnings standard would be among the highest in the country, making rideshare services less affordable and reducing accessibility. The company warned that this change could particularly harm rural communities where transportation options are already limited.
According to Uber’s testimony before the Oregon Senate Committee on Rules, the company may scale back or even shut down operations in parts of the state if SB 1166 passes. Uber said that the financial burden imposed by the bill would make it challenging to sustain operations, particularly in rural areas. The company emphasized its preference for a balanced solution but warned that the current requirements are unsustainable.
CBS News reported that after Minnesota lawmakers passed a bill similar to SB 1166 in 2023, Uber announced that it might discontinue services across most of the state. Lyft also expressed concerns, indicating that it might follow suit if the bill became law. The legislation was ultimately vetoed by Governor Tim Walz, who cited potential negative effects on transportation access and driver earnings.
According to his LinkedIn, Arab is Uber’s public policy and communications representative, frequently serving as the company’s spokesperson during public hearings and in media discussions on regulatory matters. Prior to his role at Uber, Arab spent over ten years working as a television news anchor and reporter in major U.S. markets.