Uber Forced Out of Kansas

mpicpp sends news that Uber has been forced to leave Kansas. The company says a bill pushed through the state legislature (SB117) makes it impossible for the company to operate there. The bill had been vetoed by Kansas governor Sam Brownback, but lawmakers secured enough votes to override it. "The measure requires drivers for ride-hailing companies to undergo background checks through the Kansas Bureau of Investigation and hold additional auto insurance coverage for the period in which they have turned on the mobile app that connects them to riders."

Comments

Not forced...

[Etherwalk]

They're not forced, they're just figuring it's not worth it. Kansas is a relatively small market and they'd need to invest a bit and incur additional liability and complexity that they're unwilling to deal with if they can help it.

The law requires primary automobile liability insurance in the amount of at least $50,000 for death and bodily injury per person, $100,000 for death and
bodily injury per incident, and $25,000 for property damage, which is more than some states let taxis get away with but isn't really unreasonable. For some reason (maybe there are cities just over the border and it wants to let uber drivers from Kansas work there) it differentiates between being *ready* to get a ride and actually driving someone, and if you drive someone you also need primary automobile liability insurance that provides at least $1,000,000 for death, bodily injury and property damage. Which is more than most people get for their personal vehicle (especially in Kansas), but not at all unreasonable for a commercial policy.

Re:Not forced...

[zazzel]

Are those numbers real? Sounds like a joke given the propensity to sue for absurd damages.
I'm German, I have a coverage of €100.000.000 (!) combined for death, injury and property damage on my private car (though max. €15.000.000 per person harmed). It's really not more expensive than minimum coverage, because the odds are so low, but maybe US lawyers would immediately take their chunk out of it and make it too expensive for everyone.

Minimum coverage here is €1.000.000 for property damage and €7.500.000 for bodily injury. Difference in annual premium is maybe 10-20€ between the two.

Re:Comparison with existing taxi laws?

[Anonymous Coward]

At least in Kansas City, Uber still has an edge on traditional taxi services. It costs $350 to start a taxicab company, and each driver is interviewed, background checked, and tested. Uber is just throwing a tantrum because their illegal behavior is starting to be noticed.

Uber cars not covered by insurance

[Anonymous Coward]

Normal car insurance doesn't cover commercial use, so Uber drivers should be prosecuted as not having insurance anyway. That is true for all states, not just Kansas.

If the Uber drivers have the correct drivers insurance for commercial passenger vehicles, then it covers those limits and substantially more.

Kansas is basically just defining the minimum level of insurance that they need, not forcing them to take proper insurance, that's already a requirement for driving in most states.

Even if Kansas caves, the requirement to have valid driving insurance is still law, and Uber drivers cannot do commercial work on insurance designed for commuting and home use.

Re: Uber cars not covered by insurance

[thaylin]

except for the fact uber provides commercial insurance coverage to their drivers.

Re:Not worth it or worth the risk?

[Greystripe]

Considering that the name of the street is State Line it does give you a clue...

Re: Good

[dsparil]

That part of PayPal is an official bank with FDIC insurance so there's no regulation skirting.