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 New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags Internet-based applications and servicesinternetUber Technologies

Featured

Slideshows

Consegna comes to town with AWS cloud offerings launch in Auckland

Consegna comes to town with AWS cloud offerings launch in Auckland

Emerging start-up Consegna has officially launched its cloud offerings in the New Zealand market, through a kick-off event held at Seafarers Building in Auckland.​ Founded in June 2016, the Auckland-based business is backed by AWS and supported by a global team of cloud specialists, leveraging global managed services partnerships with Rackspace locally.

Consegna comes to town with AWS cloud offerings launch in Auckland
Veritas honours top performing trans-Tasman partners

Veritas honours top performing trans-Tasman partners

Veritas honoured its top performing partners across the channel in Australia and New Zealand, recognising innovation and excellence on both sides of the Tasman. Revealed under the Vivid lights in Sydney, Intalock claimed the coveted Partner of the Year 2017 (Pacific) award, with Data#3 acknowledged for 12 months of strong growth across the market. Meanwhile, Datacom took home the New Zealand honours, with Global Storage and Insentra winning service provider and consulting awards respectively. Dicker Data was recognised as the standout distributor of the year, while Hitachi Data Systems claimed the alliance partner award. Photos by Bob Seary.

Veritas honours top performing trans-Tasman partners
An Evening With Eugene Kaspersky for Kiwi partners in Auckland

An Evening With Eugene Kaspersky for Kiwi partners in Auckland

​New Zealand partners came together for An Evening With Eugene Kaspersky in Auckland, an invitation only event as part of Kaspersky Lab Partner Engage. Following an evening of insights and executive networking with the founder of Kaspersky Lab, Eugene Kaspersky, Kiwi partners got up close and personal with Eugene in an unprecedented​ panel discussion. Facilitated by Reseller News, this panel explored channel relationships, successful business strategies, and the latest ground breaking technologies to impact the security market. Photos by Maria Stefina.

An Evening With Eugene Kaspersky for Kiwi partners in Auckland
Show Comments