Uber’s involvement in California has proven to be rocky. The most recent instance saw the ride-sharing giant fined $7.6 million by the state’s Public Utilities Commission for failing to report driver data.
The company first ran into this roadblock during the summer of 2015 when an administrative law judge found that Uber drivers weren’t being fair in offering services to all riders. It was recommended that Uber pick up fines for failing to report driver data. It was also recommended that the company is barred from operating in the state—which has been on the books in California since 2013.
The fine-punishment combination suggestion was meant to either encourage or scare Uber into getting things in order given that the company was given enough time to act on the suggestion.
The court and regulatory battles will hinder Uber’s progress in the market. Opportunities could prove to be slow in materializing for the company such as being able to offer services at LAX—a pot that rival Lyft currently has its finger in.
Uber has agreed to pay the fine to continue operating in the state, but will take the case to the California Court of Appeals.