Uber operations shut down in Kansas
Newly enacted state regulations put end to ride-sharing service
App-based transport service Uber has shut down operations in the US state of Kansas after state lawmakers overrode Governor Sam Brownback's veto on a bill that will tighten regulations on the certification of drivers, Reuters reported.
The legislation requires companies like Uber to formally guarantee that drivers are insured for collisions and injury to passengers. Uber says it already provides commercial coverage for its drivers.
Under the new rules, the Kansas Bureau of Investigation would be required to conduct background checks on drivers, something Uber currently does for itself through third-party investigators.
Uber announced it would shut down operations because it is unable to comply with the regulations. The company had to stop operating in Anchorage, Alaska from March because of regulatory restrictions. In the same month, the city of Eugene, Oregon sued Uber, to stop its service until the company met "minimum safety requirements". A similar suspension occurred in Boise, Idaho, in February.
Uber's march from a San Francisco start-up to a global technology company serving some 300 cities, has been disrupted by resistance from regulators and taxi unions around the world. The company's setbacks have been intermingled with some successes, however, as last month the firm was given leave to operate in Portland, Oregon, and yesterday a Sao Paulo court cleared the way for business in Brazil.