Uber could pay dearly for brazen behaviour

UBER's law flouting could bring its joyride to a screeching halt. The taxi app company is covering its drivers' fines for illegally picking up passengers.

That may be just another business expense to a firm that earned a US$40 billion valuation by moving quickly and breaking the rules. But the legal, lobbying and public relations costs of reckless behaviour are accelerating fast.

The strategy's benefits are obvious from Uber's explosive growth and popularity among investors. The company said this summer that revenue was at least doubling every six months, and its market value has soared. The costs remain largely hidden, though - a red flag considering the service's prodigious appetite for capital. It has raised more than US$2 billion from investors since June.