Uber doesn't comply with a city ordinance in Bloomington and Normal, where drivers for the ride-booking service are subject to fines, attorneys for the city of Bloomington said.
Uber launched service in Bloomington and Normal on Sunday along with the cities of Champaign, Urbana, Aurora and Rockford.
Bloomington assistant corporation counsel George Boyle said he contacted Uber general manager Chris Taylor earlier this week to inform him that the company can't legally operate in Bloomington-Normal. Boyle cited an ordinance regulating the operation of "transporting passengers for hire," The Pantagraph reported.
Bloomington-Normal's ordinance requires taxis and similar services to meet certain insurance requirements. The law also charges a nominal fee to operate vehicles and sets rates.
The city will work to make changes to code that would allow Uber and similar services, city communication manager Nora Dukowitz said. But in the meantime Uber drivers are subject to fines of $250 or more.
Taylor cited a state law regulating services such as Uber, but the law isn't effective until June. In response, Uber spokeswoman Jennifer Mullin said via email that the company didn't have anything new to report regarding conversations with the city.
Uber already operated in Chicago and Springfield. Other cities in Illinois, including Champaign, are looking at how to handle Uber operations.
"We have a working group with Champaign-Urbana that has put together policy recommendations but it hasn't gone to the council yet," said Elliott Nelson, who assists the Champaign city manager.