The state of California has given the ride-hailing company 30 days to comply with state laws, or it will be shut down, as well as fined up to $7.3 million, TechCrunch reported yesterday (July 16).
The law that Uber has yet to obey requires the company to submit operational data for accessibility to the California Public Utilities Commission as part of the legalization of ride-hailing in the state, which happened back in 2013. The commission gave Uber, along with its competitors Lyft and Sidecar, one year to hand over the information. As of yesterday, Uber was the only service to not follow through.
According to Uber, it has fulfilled its obligation under the law but refuses to submit additional data the commission requested.
“This ruling — and the associated fine — are deeply disappointing,” Uber spokesperson Eva Behrend told TechCrunch.
“We will appeal the decision as Uber has already provided substantial amounts of data to the California Public Utilities Commission, information we have provided elsewhere with no complaints. Going further risks compromising the privacy of individual riders as well as driver-partners. These CPUC requests are also beyond the authority of the Commission and will not improve public safety,” Behrend added.
Uber seems to have its hands full contending with regulations in the state of California. Just last week, the company filed a briefing in court questioning the validity of a class-action lawsuit filed by drivers to reclassify themselves as Uber employees and not independent contractors.
The motion came after the California Labor Commission declared last month that at least one Uber driver was an employee, not an independent contractor. But the company continues to push back, blaming the outdated laws governing the 1099 business model and emphasizing that the lawsuit does not represent the majority of its drivers or the very nature of its business model.