Just over a week after the city of Portland slapped a lawsuit against Uber, the two have reached an agreement under which the ride-sharing service will pause its operations there for three months while city officials work on changing the existing private car regulations.

In addition, as part of the deal, if new regulations are not in place by April 9 next year, the city will allow ride-sharing companies to operate.

“Uber is dedicated to curating and continuing a valuable and constructive relationship with Portland’s lawmakers, working to create a regulatory framework that works for everyone, not just us. Not just the taxi cabs. Not just the city officials. Everyone,” the company said in a blog post.

Uber will close up shop within the city limits beginning the evening of December 21st, although it will continue operating outside of city limits — throughout the Portland Metro area, including Beaverton, Gresham, Hillsboro, and Tigard.

In a press release, Portland's Mayor Charlie Hales said that the city will convene a task force that will study, discuss and make recommendations on things like whether to continue to limit the total number of permits granted, whether to have a regulated pricing system, mandated criteria (including insurance, inspections and background checks), accessibility, and more.

Uber started operating in Portland earlier this month without the approval of city officials, something which prompted the Portland Bureau of Transportation to issue a warning to the company to be ready for civil and criminal penalties. This was followed by a lawsuit as well as a cease and desist order.

A day later, Los Angeles and San Francisco followed suit and sued the company for making misleading statements and allegedly violating California state law. The news also comes just a day after the Chinese Internet giant Baidu agreed to make an investment in Uber.