Taxi service Uber has been fined €10,000 by the Dutch transport ministry for continuing to operate its budget Uberpop service in the Netherlands, according to broadcaster RTLZ

Uberpop helps private citizens to operate as taxi drivers, using their own cars and charging customers around half the rate of a normal taxi journey.

The Dutch company court said at the beginning of December Uber must stop the Uberpop service because it is illegal and threatened it with fines if it failed to comply.

So far five Uberpop drivers have also been fined for breaking taxi laws. Uber said earlier it would pick up their fines. The transport ministry fine is the first time the company itself has been hit.

Uber, founded in 2009, is reported to have raised an additional $1.6 billion in convertible debt last week. The company operates in 277 cities in 54 countries and has said it is opening in a new town every other day.