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Uber is out in Kansas. The ride sharing company made the announcement that it is pulling out of that Midwestern state on Tuesday.
The reason. The Kansas State Legislature passed a new law, over the veto of Governor Sam Brownback, which imposes regulations on ride sharing services.
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The company was trying up until the last minute to stop the override of the governor’s video. It said in a blog post yesterday, “States including Wisconsin, Oklahoma and Indiana have recently passed statewide ridesharing regulations and cities such as Kansas City, Missouri have created regulations that allow for innovation to flourish and keep Uber in their community. A vote to override the Governor’s veto will send a message across the nation that Kansas is not open to innovation or the economic opportunity ridesharing can provide”
But the Kansas Senate went ahead and overrode the veto by a vote of 34 to 5.
AP has reported that this will affect some 800 Uber drivers who work in 10 different Kansas cities.
Uber stated, “Following the Kansas legislature’s vote to override Governor Brownback’s veto of SB 117, Uber has ceased operations throughout the state. We’re saddened by the loss of hundreds of jobs, safe rides and transportation choice for consumers in Kansas.”
“In keeping up the motto of this great state, “Ad Astra Per Aspera, ” we will aim to reach our goal of a permanent home for Uber in Kansas even after this challenge. We extend our gratitude to the thousands of supporters, partners and champions who have spread the Uber love far and wide.”
This is yet another blow to the embattled company which has been valued at more than $1 billion, in spite of not yet going public. If things continue this way it may never make it to an IPO.
The valuation is based on how much money has been invested in Uber against shares in the company. But many who have bought into it may already regret it considering all of the cities, states and even whole countries which have banned it from operating.
There have also been accusations of assault and rape made against Uber drivers all over the world, including India, Boston and New York.
