Menu
Uber stops operations in Kansas over new legislation

Uber stops operations in Kansas over new legislation

The state legislature overruled a veto on the legislation by the governor

Uber Technologies has ceased operations in Kansas after state legislators overruled a veto by the governor on a bill that aims to tighten insurance requirements and background checks for drivers operating in app-based transportation networks.

The ride-hailing company said it had stopped operations throughout Kansas immediately after the vote on Tuesday. "Drivers who opened the app to make a living, and riders who opened it to get a ride, were both denied the freedom to do so," Uber said. It launched in Kansas about a year ago.

The Kansas Transportation Network Company Services Act was vetoed last month by the state's Governor Sam Brownback who warned against overregulating or improperly regulating an emerging industry. He pointed out in a statement the ride-hailing industry's concern that the "background requirement as currently written, weakens rather than strengthens, the level of scrutiny placed on its potential drivers."

The legislation requires that drivers obtain a local and national criminal background check, conducted by the Kansas Bureau of Investigation, before they are allowed to operate as drivers by the transport network company (TNC). The attorney general is required to release fingerprints to the KBI for the purpose of conducting criminal history records checks, utilizing the files and records of the KBI and the Federal Bureau of Investigation.

The bill also requires that if a driver's vehicle is subject to a lien in the case of a loan, the driver will have to demonstrate to the ride-hailing company and to the lien-holder that he has comprehensive and collision insurance coverage on the vehicle, both for periods logged into the TNC network and when engaged in a prearranged ride.

It also requires that while a driver is engaged in a prearranged ride, the vehicle must be covered under primary automobile insurance that provides at least US$1 million for death, bodily injury, and property damage, besides meeting other conditions.

While a TNC driver is logged on to the digital network and available to receive transportation requests, but not engaged in a prearranged ride, the bill requires primary automobile insurance of at least $50,000 for death and bodily injury per person and $100,000 per incident, and $25,000 for property damage. The insurance can be maintained by the driver, vehicle owner or the TNC.

On Tuesday, the governor's veto of the bill was overruled in a 96-25 vote by the house and in a 34-5 vote in the senate. "Over-regulation of businesses discourages investment and harms the open and free marketplace," Brownback said in a statement soon after the vote. "Uber, and other innovative businesses, should be encouraged to operate, grow and create jobs here in Kansas."

Uber said Kansas was the first and only state in the U.S. that forced it out with "unbalanced, backward regulations," destroying jobs and earning opportunities in the bargain.

John Ribeiro covers outsourcing and general technology breaking news from India for The IDG News Service. Follow John on Twitter at @Johnribeiro. John's e-mail address is john_ribeiro@idg.com


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags internetInternet-based applications and servicesUber Technologies

Events

Featured

Slideshows

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

This year’s Reseller News 30 Under 30 Tech Awards were held as an integral part of the first entirely virtual Emerging Leaders​ forum, an annual event dedicated to identifying, educating and showcasing the New Zealand technology market’s rising stars. The 30 Under 30 Tech Awards 2020 recognised the outstanding achievements and business excellence of 30 talented individuals​, across both young leaders and those just starting out. In this slideshow, Reseller News honours this year's winners and captures their thoughts about how their ideas of leadership have changed over time.​

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners
Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

This exclusive Reseller News Exchange event in Auckland explored the challenges facing the partner community on the cloud security frontier, as well as market trends, customer priorities and how the channel can capitalise on the opportunities available. In association with Arrow, Bitdefender, Exclusive Networks, Fortinet and Palo Alto Networks. Photos by Gino Demeer.

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security
Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomed 2019 inductees - Leanne Buer, Ross Jenkins and Terry Dunn - to the fourth running of the Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed the changing face of the IT channel ecosystem in New Zealand and what it means to be a Reseller News Hall of Fame inductee. Photos by Gino Demeer.

Reseller News welcomes industry figures at 2020 Hall of Fame lunch
Show Comments