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California suspends $20,000 fine against Uber as it reexamines ride-sharing rules

Uber for iPhone

California's Public Utilities Commission has continued its reconciliation with ride-sharing startups. After suspending a $20,000 citation against Lyft, the CPUC has done the same for Uber, saying that the company can continue to operate and won't have to immediately pay the $20,000 it racked up for "public safety violations." In the meantime, regulators will reexamine California's transportation rules, determining how to fit startups into the existing framework of insurance requirements, background checks, and other consumer protection laws.

This doesn't necessarily mean Uber or Lyft are in the clear: if the CPUC's rulemaking doesn't accommodate them, they could still be asked to stop operating. Uber is in a similar situation in New York, where the Taxi and Limousine Commission has started a pilot program after pushing Uber to shut down in October. Both Uber and Zimride have argued that current regulations simply aren't equipped to deal with new technological developments, especially when drivers are hired from outside the traditional licensed pool.

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