Uber technologies Inc said on Thursday that it would appeal a California Public Utilities Commission's decision to classify the Silicon Valley app partially as a charter party carrier, a move that could cost the company millions.
A charter party carrier classification is usually used for services such as towncars (high end cars) or limousines, but due to the existence of Uber SUV and UberBlack, the CPUC voted to include these services.
According to a report in the San Francisco Examiner , the new classification will mean Uber will now have to pay fees to the CPUC going back three years. The total amount of fees is yet to be calculated.
Uber, due to the decision, will be known legally in California as not only a transportation network company, but also a charter party carrier.
The decision would create regulatory compliance leading to millions of dollars in unnecessary and additional costs which could potentially harm aspects of their ride-hailing service in California, Uber has claimed.