Uber has been fined $1.3 million after being accused of paying a driver to park his vehicle in a handicapped spot in a San Francisco city park.
The taxi company was found to have illegally paid a driver for a $500 fee in 2016.
The payment of the $500 “may have contributed to the occurrence of an accident”, a court ruling said.
Uber CEO Travis Kalanick and the San Francisco City Attorney’s Office did not immediately respond to requests for comment.
Uber has since changed its terms of service to prohibit drivers from receiving payments for parking their vehicles in a public space.
The company has also been fined by the California Department of Motor Vehicles for not reporting at least one incident involving a driver who has died or been injured.
The $1 million fine is the largest for Uber in California history.
In a statement, Uber said it “has always followed the rules in every instance, including paying a fare in advance”.
“Our employees, drivers and customers deserve the best possible service, and our employees are responsible for our actions,” the statement said.
It also said Uber was “reviewing our procedures” and “continuing to investigate the matter”.
Kalanik said Uber “absolutely” would pay the fine.
“The truth is that Uber has always paid the minimum wage and we are committed to doing so,” Kalanicks statement read.
“We are going to take our own actions to address the facts and ensure that the company continues to pay its employees the highest wages possible.”
Kalanics first foray into taxi business started in 2008 and he was paid $3 million in 2016 by the company.
Uber is the most popular app for taxi services in the US, with more than a million drivers and more than 200,000 passengers.
The app has become so popular that it now has its own app, UberX, that connects users with rides in select cities.
The city of San Francisco also charges drivers for parking in its parks, with a $2,000 fee for drivers in the San Bruno and San Francisco Bay areas.
A $2 million fine from the California DMV last year resulted in Uber removing a driver from its service in the city.
Kalananick said he was disappointed in the fine but was confident the city would ultimately follow its rules.
“San Francisco is the city of dreams,” he said.
“Uber has a very good reputation here.
We don’t like to be the underdog.
It is not our style to be on the winning side.”
Uber was also fined $600 by the US Department of Justice last year after a driver was charged with felony assault.
The case was later dismissed.
Uber drivers also faced a $5,000 fine in 2015 after a San Jose taxi driver was accused of using a stolen vehicle to drive away from a woman.