Uber faces $7.3 million fine, suspension in California
Uber has been ordered to pay $7.3 million in fines for refusing to give California regulators information about its business practices, a judge ruled on Wednesday.
Chief Administrative Law Judge Karen V. Clopton argued that Uber has not adequately complied with state laws that mandate fares for all passengers, regardless of location or nationality. It needs to pay up, appeal within 30 days, or cease operations in the state of California.
The ruling highlights Uber’s ongoing struggle to fit into the established mold of the taxi industry, and all its incumbent regulations.
Here is what Uber had to say in response: “Uber has already provided substantial amounts of data to the California Public Utilities Commission, information we have provided elsewhere with no complaints”, the company said in a statement.
In a written statement, the utilities commission said Uber was the only company of its kind not to comply with the reporting requirements. Going further risks compromising the privacy of individual riders as well as driver-partners.
She called the decision “deeply disappointing”.
Uber’s business model has proved disruptive. Nor did the company provide data about which zip codes it serves or its driver safety numbers.
It has not been a smooth ride for Uber since the regulatory framework was approved in 2013.
That strategy has a romantic appeal to political candidates who see in Uber’s rise a symbol of upstart innovation meeting changing consumer demands. The company has raised $5.9 billion in venture capital from investors and is valued at more than $40 billion.
Yesterday was a tough one for Uber.
The subsidiary – Rasier-CA – operates Uber’s popular budget service, UberX.
So listen up, Jeb Bush, absolutely go ahead and order up an Uber for your ride around San Francisco on Thursday.
According to the Los Angeles Times, that data includes the number of rides requested, driver safety information and accessibility information to ensure drivers are giving rides to all passengers without discrimination.
It might be safer to talk about your Apple Watch.