Students will have to go back to hailing a cab after Uber announced it will no longer operate in Auburn.
The suspension of operations comes after the City Council passed an ordinance Jan. 6 requiring all vehicle for hire services to pay licensing fees to the city, provide background checks for drivers, have commercial insurance and have cars marked with signage.
In a letter sent out to Auburn Uber users, Uber said it's temporarily suspending operations in Auburn while it works toward a statewide regulatory framework for ridesharing.
"We simply will not operate under regulations that do not allow us to provide riders a positive rider experience and offer drivers the best economic opportunities," Uber said in the letter.
Uber noted in the letter it conducts "multi-layered" background checks and has a $1 million commercial insurance policy.
"The Auburn City Council rushed through burdensome regulations that don't make sense for this new option, and make it impossible for ridesharing to exist in the city," Uber said.
Carla Jacobs, a representative of Uber, spoke to the City Council at a Dec. 16, 2014 meeting and asked the Council to table the ordinance to allow Uber to negotiate with city.
Jacobs said the insurance requirements in the ordinance would prevent Uber from operating in Auburn.
Charles Duggan, Auburn city manager, said the insurance requirements in the ordinance are similar to requirements in Seattle, where Uber operates legally.
"I don't know why (the insurance requirements) would keep them out the market," Duggan said.
The City Council tabled the ordinance until Jan. 6.
The ordinance that passed on Jan. 6 was unchanged from the one read at the Dec. 16 meeting.
David Dorton, director of public affairs for Auburn, said the city has been working with Uber for six months.
"It's their business decision to leave," Dorton said. "We hope they'll see the value in the market."
Dorton said Uber chose to leave Auburn even though local drivers have already gone through the licensing process.
"The way you book the ride is innovative, a good innovation," Dorton said. "But a car on the road providing a vehicle for hire service is a very traditional service and that's where the rules apply."
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