Uber fined for not reporting driver data in California

A fine of $7.6m has been imposed on Uber for not reporting driver data in California

 The California Public Utilities Commission agreed with a recommendation of a judge to impose a fine of $7.6 million on Uber for its failure to meet the requirements of reporting data in 2014.

The company would be appealing the decision, but has agreed to disburse the fine for the avoidance of its license’s 1 month long suspension in the state. Spokesperson of Uber has stated “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.”

Although the fine is comparatively small for the valuation of the company at 62.5bn, it has underscored the competitive and regulatory conflict of the business model of the transporter is facing across the world.

Uber uses a smartphone application to battle with the cab industry by connecting riders and contracting with motorists. The drivers utilize their own vehicles for the facility.

Most of the tension which has swirled around the California based enterprise and other cab service providers is whether or not they must be facing the same regulatory scrutiny as conventional cabs.

California believes  they must. In June, a state labor commissioner took the decision that a driving partner of Uber was not a contractor and a worker- a judgment that was not binding, but is capable of setting a precedent for motorists to finally demand more pay and perks.

30 days later, an administrative law judge made a recommendation that a fine should be imposed on Uber and it should be suspended from running in California as it had failed to report data of drivers.

Uber appealed in August 2015, and a revised judgment was publicized on Wednesday, suggesting an increase in the fine to $7,626,000 as a contempt fine of $1000 was added.

The PUC states driver data is essential for determination of whether or not the transporter is providing services to all riders in any area. Cabs should also be complying with those regulations.

The main competitor of Uber, Lyft has succeeded in complying with the regulatory authorities. Since then, the ride sharing enterprise has provided PUC all the demanded data, though it has disagreed with the means employed to calculate the $7.6m fine.

In other news, Bloomberg has reported that CEO Travis Kalanick has stated People’s Republic of China would be surpassing Silicon Valley in entrepreneurship, invention and innovation. Travis stated at the “Geekpark” conference held in Beijing on Friday.