Uber threatens to cease operations in Colorado
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The popular ride-sharing app Uber is threatening to leave Colorado if legislation imposing new regulations is signed into law.
Why it matters: The California-based company says it can't comply with the new requirements and endure the potential legal risk to continue operating in the state.
- For consumers, the company's exit would make it harder for the hundreds of thousands of riders to find transportation and potentially put its 30,000 drivers out of business.
Driving the news: Uber warned riders and drivers about the potential impacts of House Bill 1291 via email Wednesday, asking them to contact the bill's sponsors about their concerns.
In its current form, the legislation would impose "impractical requirements" and violate rider's privacy, the company says.
The new regulations would:
- Require continuous audio and video recording of all rides with no opt-out provision. The company must pay for the equipment for drivers.
- Prohibit drivers from offering riders water or snacks.
- Mandate criminal history checks every six months, potentially forcing drivers off the road.
- Ban drivers with a history of criminal convictions, such as assault, harassment and domestic violence.
- Allow lawsuits against the company for noncompliance, which would increase the costs for riders
What they're saying: "We support real, evidence-based safety policy: not legislation that checks a box but fails to deliver.
- "As written, this bill not only misses the mark — it risks doing more harm than good," Adam Blinick, senior director of U.S. and Canada policy and communications, said in a statement.
The other side: The legislation is designed to make ride-sharing safer and comes as Lyft and Uber face complaints about not prioritizing security concerns.
- "The companies have continually talked about their dedication to safety," state Sen. Faith Winter, a bill sponsor, told the Colorado Sun. "The amount of assaults that happen are unacceptable and for them to take this stance of not wanting to increase safety is disappointing."
Between the lines: The measure's lead House sponsor is state Rep. Jenny Willford (D-Northglenn) who is suing Lyft after reportedly being sexually assaulted by a driver.
- "It's clear Uber won't stand up for safety so they can continue to maximize profits rather than address the horrible incidents that change the lives of riders and drivers forever," Willford said in a statement to Axios.
What's next: The bill comes close to the end with two weeks left in session. The Senate is poised to consider the bill in coming days before it returns to the House for a final vote.
Editor's note: This story has been updated with new details throughout.