California Fines Uber $7.6M for Failure to Share Data

By Staff Writer

Jan 15, 2016 09:07 AM EST

Uber has been fined $7.6 million by the California Public Utilities Commission for failing to follow reporting mandates that would protect passengers from discrimination. Uber has 30 days to pay the fine or be suspended in California.

California law requires Uber to share data with the state concerning their passengers. Information like the number of rides accepted and denied, the number of wheelchair-accessible ride requests and miles traveled and amounts paid are used by the state to help determine how accommodating the service it to all passengers.

The law comes in line with criticisms by disability rights advocates. They claim that Uber has been working around the American with Disabilities Act, which requires companies that provide transportation services to accommodate those with disabilities. Other suits have claimed that Uber has refused service to those in wheelchairs, and blatantly denied service to users with service dogs.

Uber claims that it has given all the requested data to the state and has an issue with how the Commission calculated the fine, which the company will appeal. An Uber spokesperson, with Fortune, explained their next steps.

"While we are disappointed by the decision, we look forward to making our case to the California Court of Appeals. In the meantime, we will pay the fine and continue to work in good faith with the Commission."

Uber has come under fire in many of the cities its been implemented because of an ongoing debate on whether or not Uber and other ride-sharing companies should follow the same regulations as traditional taxi companies. The LA Times reported that, in June, California determined that an Uber driver would be considered an employee and not a contractor, which would mean drivers would be able to demand more pay and incentives from the company.

The Commission originally fined Uber in July $7.3 million for failure to comply with requirements. When Uber appealed, an administrative law judge reissued the ruling on Wednesday, increasing the fine to $7.6 million.

The Verge wrote that the fine would be easy for Uber to pay since it is the most valuable startup, worth an estimated $62.5 billion. But the fine comes right after Uber agreed to refund California residents a total of $1.8 million for extra fees improperly collected for rides to the airport.

The startup has been accused of improperly handling its customers and drivers in many of the cities that its used in, but despite all the legal action, people still use and still drive for Uber. It seems that with this much demand, the service will have a place in the future, but it needs to be able to work with existing national and state structures if it wants to be able to gain any momentum. 

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