Uber faces threat of California ban

Uber faces the threat of a ban in its home state of California, as it clashes with regulators who introduced pioneering ride-sharing rules in 2013.

A judge with the California Public Utilities Commission (CPUC) fined Uber $7.3 million (€6.7 million) yesterday for failing to provide detailed information about its operations and gave the company 30 days to comply or have its operating licence suspended.

Uber said it would appeal the ruling, which it described as “deeply disappointing”.

An appeal would alleviate the immediate possibility of a ban while the case is heard again before a CPUC judge, but Uber’s decision to fight the case threatens to undermine legislation seen as a template by many other US states for handling disruptive new transportation services.

California, which is home to San Francisco-based car-hailing apps Uber, Lyft and Sidecar, was the first state to pass ride-sharing regulations in 2013. These permitted “peer-to-peer” alternatives to traditional taxis, allowing anyone with a qualifying car to charge customers for a ride as long as the companies provided $1 million insurance, criminal background checks and other mandated safety measures.

Although the move was contested by taxi drivers, ride- sharing companies welcomed the legal clarity, with Lyft’s chief executive hailing the “responsible process and common-sense regulations”. – Copyright The Financial Times Limited 2015