Uber’s run of good news since Dara Khosrowshahi took over has ended as the ride-sharing app has been fined by Colorado authorities to the tune of $8.9 million. Uber was accused of allowing 57 people to drive for it. These individuals did not have valid driver’s licenses or had committed other offences that would have disqualified them.
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The Colorado Public Utilities Commission said its probe found violations that included 12 drivers with felony convictions, 17 drivers with major moving-vehicle violations and three drivers with a type of driver’s license required after recent drunk-driving convictions.
“We have determined that Uber had background check information that should have disqualified these drivers under the law, but they were allowed to drive anyway,” Doug Dean, the commission’s director, said in a statement.
Uber representatives said the company was only made aware of the fine through the press release and was reviewing its options. Colorado officials noted that the company could pay 50% of the fine within 10 days to resolve the case, or request a hearing to contest it.
Uber released a statement that suggested the company was surprised by the action given that it had been working on the matter with state officials.
“We recently discovered a process error that was inconsistent with Colorado’s ridesharing regulations and proactively notified the Colorado Public Utilities Commission,” the statement read.
“This error affected a small number of drivers and we immediately took corrective action. Per Uber safety policies and Colorado state regulations, drivers with access to the Uber app must undergo a nationally accredited third-party background screening.”