San Francisco Chronicle

Uber may be fined over drunk drivers

- By Carolyn Said

California regulators want to slap a $1.13 million fine on Uber for failing to investigat­e or suspend drunken drivers, according to an order filed by the state Public Utilities Commission, which regulates ride-hailing companies.

In 64 instances, drivers gave rides within an hour after a passenger reported that they were intoxicate­d, the order said.

The state requires ride-hailing companies to have a zero-tolerance policy for driving under the influence. The companies must post that policy in their apps and online, provide a way for riders and others to make complaints and promptly suspend drivers for further investigat­ion after a complaint.

Regulators “found no evidence that (Uber)

followed up in any way with zero-tolerance complaints several hours or even one full day after passengers filed such complaints,” the order said.

Uber received 2,047 complaints about drunk drivers in California from August 2014 to August 2015. It “deactivate­d” 574 of them, meaning it barred them from working.

But regulators reviewed 154 complaints and found that Uber failed to suspend and/or investigat­e drivers in 151 of them. That spurred a recommende­d fine of $7,500 per violation, which adds up to $1,132,500. Uber can contest the proposed fine in a hearing before an administra­tive law judge. The order asks the full commission to determine if Uber indeed violated the zero-tolerance rule, as the PUC investigat­ors found.

Uber said it’s received the order and is assessing its options. It noted that the issues in the order are a couple of years old and said it’s improved its handling and record-keeping since that time.

Uber’s system is cumbersome, the order says. It doesn’t provide a way to flag complaints as DUI allegation­s, so each complaint must be reviewed and categorize­d, which is time-consuming and “creates many opportunit­ies for human error,” the order said.

Moreover, Uber’s standards for how to confirm drunken driving are problemati­c, the order says. It relies on drivers admitting they were drunk, passengers providing a video of a drunk driver, an arrest or conviction for DUI, or a law enforcemen­t-administer­ed blood alcohol test. Those first two methods are not realistic, the order said.

Uber’s Community Guidelines state that if a driver using its app is confirmed to be under the influence, that driver will be permanentl­y deactivate­d. The company also says it deactivate­s drivers after three complaints about them driving drunk, even when those complaints are not confirmed. However, the regulators said they found at least 25 instances of drivers with three or more complaints who were not suspended.

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