Ride hailing cab service Uber will pay $3.5 million into the Pennsylvania’s general fund to settle a long running dispute with the Pennsylvania Public Utility Commission. The civil penalty is one-third of the $11.4 million fine levied against the company. On Thursday, the commissioners approved the settlement in a four to one vote,
The case with Uber was “intense, complex and contentious,” said Chairman Gladys Brown in a statement. The settlement represented “an acceptable solution” and would allow PUC to avoid litigation, she added.
The settlement resolves any issues relating to Uber’s initial entry into the state. It operated for six months without a license in 2014, and a month after a cease-and-desist order.
Uber and another ride-sharing company Lyft began to offer rides in Pennsylvania from 2014, and did so without an approval from the state. While Lyft settled for$250,000 in 2015, Uber did not.
PUC accused Uber of obstructing an investigation into their operations, and were fined a record $11.4 million dollars to which Uber appealed.
We cannot forget that when Uber and Lyft began offering Transportation Network Company service, it was not clear that the companies were in fact operating illegally. In 2014, no Pennsylvania law or portion of the Commission’s regulations addressed TNC service,” Commissioner Robert F. Powelson said in a statement.
But, Commissioner John F. Coleman, Jr. said that the penalty is too low, to record number of rules the company has violated and unwavering propensity to operate illegally.
“We are glad to have reached a resolution with the PUC,” an Uber spokesperson said.
In November 2016 Uber became a licensed TNC operator subject to PUC regulation after Governor Tom Wolf signed ride-sharing into law.
The company is working in Pittsburgh on its autonomous vehicle technology.
“The city has long supported reasonable regulation that allows ride-sharing companies to grow, as long as safety for passengers and drivers is assured, and drivers are treated responsibly in this new economy," said Tim McNulty a spokesperson for Mayoral.
Uber has 45 days to send payment, which will go to Pennsylvania’s general fund.
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