25-04-2025
Uber Threatens to Leave One State Over New Bill
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Uber says it may shut down operations in Colorado if the state passes new rideshare safety legislation, a move that would mark one of its most aggressive responses to state-level regulation in years.
Why It Matters
The proposed law, House Bill 1291, would create one of the strictest oversight regimes in the country for ride-hailing platforms. Uber's threat reflects the growing tension between local governments seeking tighter safety standards and tech companies warning of stifling overregulation. The outcome in Colorado could influence how other states regulate app-based labor models.
What To Know
HB-1291, introduced by Representative Jenny Willford, passed the Colorado House 59-6 and recently advanced in the Senate. The legislation mandates regular background checks for drivers, requires all rides to be recorded, and bans the exchange of food and drinks between riders and drivers, among other measures.
Willford, a Democrat, cited her own experience of being sexually assaulted by a rideshare driver.
Uber claims it already conducts background checks and offers a safety button, as well as other safety measures, but says the bill's provisions go too far, particularly with continuous recordings and restrictions on driver-passenger interactions.
"HB25-1291 is a deeply flawed proposal, which if implemented would leave us no choice but cease operations in Colorado," an Uber spokesperson told Newsweek.
"It threatens user privacy by requiring every trip to be recorded, imposes major technical and financial burdens, and offers no clear safety benefit in return. 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."
A stock photo of rideshare apps on a phone screen.
A stock photo of rideshare apps on a phone screen.
5./15 WEST/Getty
Uber's threat to exit Colorado echoes its previous confrontations with regulators. In 2016, it pulled out of Austin, Texas, after the city enacted stricter background checks, but returned only after the Texas Legislature overrode local rules. The company also threatened to leave Minneapolis in 2024 due to wage regulations, but a last-minute compromise kept them in place.
For Colorado, this isn't the first high-profile conflict with Uber.
In 2017, the company was fined $8.9 million by the state for allowing individuals with serious criminal convictions or suspended licenses to drive for the platform. At the time, Uber blamed an error in background screenings, but now touts "robust" background checks of its drivers.
Meanwhile, Lyft hasn't threatened to leave the state if the bill becomes law. A spokesperson told Newsweek the company believes a compromise can be reached between legislators and rideshare companies.
What People Are Saying
An Uber spokesperson told Newsweek in a statement: "Uber has led the industry on safety from day one—backed by technology, transparency, and real accountability. We don't just talk about safety; we build it into the core of our platform with robust background checks and features like Audio and Video Recording, an Emergency Button, PIN verification, and RideCheck."
Representative Jenny Willford told Newsweek in a statement: "The bottom line is one sexual assault is one too many, but for Uber, 8,900 aren't enough to take action. This is a cynical and disheartening move by a multi-billion dollar company to turn their back on survivors rather than implement real safety measures. We have worked with Uber in good faith for months and accepted many of their amendment requests - including a full rewrite of the bill.
"For years, Uber has checked the box on safety, but time after time failed to deliver for victims. 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."
A Lyft spokesperson told Newsweek in a statement: "We believe there is a compromise that can be reached that would be beneficial for both riders and drivers, but there are still several aspects of the bill that would make implementation extremely problematic. At the very least, it would have a drastic, negative impact on those who use the platform in a way that does not help achieve the goal of the legislation. We encourage Senate officials to collaborate with us on a bill that addresses these realities and avoids the unintended consequences the current version creates."
What Happens Next
The Senate is now considering the bill. If passed, it will head to Governor Jared Polis's desk for a signature—and potentially push Uber to follow through on its threat to leave the state.
