As Marissa Ventrelli reports for the Colorado Springs Gazette’s political blog, a bill to require rideshare driving companies take additional steps to protect the safety of riders is stoking controversy after rideshare giant Uber threatened to completely pull out of the state should the bill be signed into law:
House Bill 1291 would require rideshare companies to conduct background checks on drivers every six months and prohibit them from hiring applicants who have been convicted of crimes, including domestic violence, stalking, and harassment.
The legislation — sponsored by Reps. Jenny Willford, D-Northglenn, and Meg Froelich, D-Englewood, and Sens. Faith Winter, D-Westminster, and Jessie Danielson, D-Wheat Ridge — also requires companies to investigate complaints about drivers within 72 hours. If the allegations are found to likely be true, they must deactivate the driver’s account.
The bill also requires rideshare companies to record audio and video throughout each ride.
In addition, the bill would crack down on the widespread “sharing” of rideshare accounts, a major security risk that effectively nullifies the company’s screening. As for the requirement that rideshare drivers record audio and video of their rides, the technology needed for that is available for less than $50 on Amazon. The real problem for Uber would more likely be the establishment of a right of passengers to sue over violations–and unless you’re a corporate bean-counter or on retainer to Uber you’re likely to support that provision as well.
And perhaps most importantly as the Colorado Sun’s Jesse Paul explains, Uber’s threat to pull out of Colorado entirely if this bill passes is in all probability toothless:
Uber’s threat to exit Colorado represents an extraordinary response to a bill by a private company. While organizations frequently warn lawmakers about how legislation will affect their operations or bottom line, they rarely threaten to leave Colorado — at least publicly — as a result of a policy change.
And when they do make the threat, they rarely follow through.
The last notable example of a company making good on its vow to leave the state was about a decade ago, when Magpul Industries left Colorado following the passage of a measure limiting the number of bullets that a gun magazine can contain.
Readers will recall that the real reason for plastic gun part manufacturer Magpul’s relocation out of Colorado was millions in incentives offered by other states, not Colorado’s magazine limit law. But either way, the choice by a corporation to abandon millions of dollars in revenue would only rationally be made if the new regulations on their business would actually result in losses rather than profits, and this bill simply would not do that. Uber might not like being required to better screen drivers and crack down on account sharing, but doing so will not break their business model despite their protestations today. And if their business model really doesn’t allow for a little more attention to keeping passengers safe, maybe it’s time for alternatives.
On general principles, threats by corporations that would ultimately hurt those corporations more than our local economy should not be taken too seriously. With that said, we hope that all parties can come to an agreement on what seems like a no-brainer. Last year, the legislature passed a bill to protect drivers–legislation Uber sued and lost the fight to stop from taking effect, and they haven’t left the state over it. This year, it’s about protecting passengers.
As long as there is money to be made, compliance always finds a way.
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I only use Uber Eats but I can personally attest to the problem with drivers who don't match the photo on the app. It seems like a lot of people are delivering using other people's accounts and that would make me nervous about getting into their car for sure.