Uber Fined $7.6 Million By California Regulators
SAN FRANCISCO (CBS SF) – State regulators levied a $7.6 million fine against Uber Thursday for failing to provide information on how the popular ride-hailing company conducts business.
California Public Utilities Commission agreed with a judge's recommendation on the penalty for not reporting data such as accidents, use of disabled-accessible vehicles, and neighborhoods where drivers tend to turn down ride requests.
The CPUC said that if Uber did not pay the fine within 30 days the company's license could be suspended. Uber was also ordered to pay $1,000 for being in contempt of the public utilities code.
An Uber spokeswoman said the company has now submitted all of the requested data and would appeal the ruling.
"While we are disappointed by the decision, we look forward to making our case to the California Court of Appeals," the company spokeswoman said in a prepared statement. "In the meantime, we will pay the fine and continue to work in good faith with the commission."
The CPUC says reporting the data is a requirement and necessary to determine how Uber is service passengers in different neighborhoods.
Uber's main competitor, Lyft, has complied with the rule which is also required of taxi companies.
In June, the California Labor Commission ruled an Uber drivers should be classified as an employee, and not an independent contractor. Last month, a federal judge increased the number of drivers eligible to join a lawsuit alleging they were incorrectly classified as independent contractors when they were actually employees.
