UberX’s Imminent Suspension in California Could Play Poorly Elsewhere
Inside an UberX vehicle Jason Tester / Flickr.com
The ride-booking subsidiary intends to appeal, but overarching public safety concerns remain.
Legal trouble in the Golden State could stymie Uber’s legislative push in states and localities across the U.S.
The popular ride-booking service plans to appeal the California Public Utilities Commission’s $7.3 million fine and impending suspension of subsidiary UberX.
An administrative law judge on Wednesday found UberX failed to fully comply with CPUC reporting requirements and gave the operator 30 days to pay up and release accessibility, service and driver safety information.
Uber spokeswoman Eva Behrend issued a statement to LA Weekly:
This ruling—and the associated fine—are deeply disappointing. 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. It is important to note there will be no suspension while the appeal is heard.
But the CPUC is demanding the number and percentage of customers requesting vehicles by ZIP code and how often UberX delivers, amounts paid and the cause of all company-involved driving accidents.
UberX is the only transportation network company that hasn’t responded to the CPUC’s Sept. 22, 2013, request for information, despite being given a year to do so.
Per the commission:
In adopting these reporting requirements, the CPUC intended to gather information necessary to its oversight of TNCs on behalf of the riding public: whether TNC services are being provided in a nondiscriminatory manner enabling equal access to all, and whether TNC services are being provided in a manner that promotes public safety.
Data from more than 1 billion taxicab rides in New York and Chicago appear to indicate Uber’s presence in both cities has led to a decrease in customer complaints among its competitors.
Aside from the service’s positive effect on the competition—and as if in response to the CPUC’s public safety concerns—Uber released safety details on Wednesday as part of an announcement about Uber pickup services now available at San Diego International Airport.
From Uber:
In our application to the Airport Authority, we explained in detail how Uber focuses on safety for riders and driver-partners before, during and after a ride–as well as how our background checks work in California.
Once Uber’s appeal is filed, the judge will review and alter the decision or keep it the same. The ruling then goes before commissioners for a vote during a public meeting.
A complete copy of the CPUC decision can be found here.
(Photo by Jason Tester / Flickr.com)
Dave Nyczepir is News Editor at Government Executive’s Route Fifty.
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