Kansas refuses to be bullied by Uber; why does ride-share giant oppose background checks, insurance rules?

“Pure political theater.”

That’s how a Kansas lawmaker described Uber’s decision yesterday to suspend operations in Kansas after the state legislature passed a law with rule Uber would have been required to follow. Lost amid all the fun headlines about Uber “Not in Kansas anymore” and the ignorant “Uber kicked out of Kansas” headline is this simple truth: the firm is trying to bully local lawmakers, and it’s hoping no one’s paying attention to the details. How do I know this? Uber’s statement upon announcing its withdrawal from the state made no mention whatsoever of the reasons the ride-sharing firm opposes the new Kansas law. Instead, there’s blather about Kansas traditionally supporting free markets (I wish Uber would!), along with passing references to drunk driving and lost jobs. Pure political theater.

Kansas’ law now requires Uber drivers (and others) to carry comprehensive and collision insurance, this is to ensure that if they were involved in an accident and one of their users or any other vehicle owner involved in the accident were to make a claim against them by using an Uber Accident Lawyer they would be covered by the correct insurance. Kansas law also requires Uber drivers to submit to a Kansas Bureau of Investigation background check. Just for a little perspective, the Lamb of God Early Childhood Ministry program requires its teacher applicants to undergo at a Kansas Bureau of Investigation background check. As do public schools.

It’s good enough for teachers, but not good enough for Uber?

It’s really important to ask yourself, and keep asking, why Uber is so opposed to letting local authorities have their say about how their locality operates? Folks are so quick to criticize Washington for taking local rule away from mayors and governors; why might they be so willing to let a Silicon Valley creation set the rules for Kansas?

Oh, jobs. Right? Maybe not.

Back to the “theater” part. If you read Uber’s blog post carefully, you’ll note that it laments the loss of “hundreds” of jobs. Since we know that most Uber drivers are part-time, one can surmise that Uber might be employing fewer than the equivalent 100 full-time jobs in Kansas. But don’t forget, there is no such thing as a full-time Uber job. Those drivers have no benefits. They won’t get workers comp if they get injured, or health benefits. In other words. Uber pulling out of Kansas is kinda like McDonald’s closing a restaurant, and far less significant than Walmart closing a store.

This isn’t about Kansas. It’s about other local authorities that Uber wants to bully.

Now I wouldn’t mind hearing from Uber about equality in the marketplace. Let’s make sure the same rules apply to taxis and all other car hire firms. Here’s all the reasons insurance should work like this, and by the way, your background checks aren’t so hot either, Kansas. That would have been the content to include in a corporate blog post announcing the reason your firm is leaving a state. But Uber doesn’t want that. Because applying all taxi rules to Uber would open a Pandora’s box the firm fears. That would be a free market, one where every company plays by the same rules. Let Uber compete in that market. It might actually win! It might not be worth $40 billion, though..

So instead, a stunt. ”

Insurance? Background checks? We’re out of here. You Kansans are so backwards. Why do you hate innovation? We’ll just fly over your state.”

Trust me. You might hate your local politicians. But you’re going to hate Uber, and companies like Uber, running your state instead.

For more on Ubernomics, read the 6 reasons Uber will drive itself into the ground, and might take mass transit with it.

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