Uber burns rubber out of Kansas, citing 'unbalanced, backward regulations'

http://www.theguardian.com/technology/2015/may/06/uber-pulls-out-kansas-regulations

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“Kansas just shut down Uber, no pickups effective immediately,” was the message sent to Uber users in Kansas after state lawmakers voted through legislation that would force the company to carry out background checks on its drivers and carry additional car insurance.

The controversial car service company said on Tuesday it would cease operations in Kansas immediately after state lawmakers vote for laws requiring Uber, and other taxi apps, to carry out background checks through the Kansas bureau of investigation and hold additional auto insurance coverage when they have Uber turned on in their cars.

“Over the past several weeks, more than 6,600 Uber Kansas supporters urged their state legislators and Governor [Sam] Brownback to support ridesharing services, like uberX,” Uber said in a blogpost. “Unfortunately, Kansas lawmakers chose not to listen to their constituents, and special interests succeeded in securing an override of the Governor’s veto of SB 117 – a bill that makes it impossible for Uber to operate in the state.”

Uber said it “ceased operations throughout Kansas” immediately after the vote at 2.45pm on Tuesday. The message was sent to Uber users statewide.

The company said Kansas lawmakers had “destroyed hundreds of Kansas jobs and thousands of new earning opportunities in the coming years.

“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 Kansas was “the first and only state in the nation that forced Uber out with unbalanced, backward regulations”, which was disappointing given that Kansas is “traditionally known for its support of free-market ideals and innovation”.

Senator Jeff Longbine, an Emporia Republican, said Uber was acting too hastily to immediately withdraw its service. “Why they would cease operations this afternoon, I think shows some of the difficulty we’ve had in reaching a compromise,” he said.

Chinese police on Wednesday visited Uber offices in the city of Chengdu as the local authorities widen their investigation into Uber operations in China. In January, the Chinese government banned drivers of private cars from offering services like Uber via mobile phone apps.

Last week police raided Uber offices in the southern city of Guangzhou, seizing thousands of iPhones and other equipment used to run the business. The city’s transport commission said it suspected Uber was operating an illegal taxi service without a proper business registration and threatened fines of 30,000 yuan ($4,860).

Uber has been banned in several areas of India, including New Delhi, Hyderabad and the entire southern state of Karnataka.