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Uber Forced Out of Kansas

Posted by Soulskill on from the click-your-heels dept.

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."

2 of 302 comments (clear)

  1. Not forced... by Etherwalk · · Score: 5, Informative

    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.

  2. Uber cars not covered by insurance by Anonymous Coward · · Score: 5, Informative

    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.