Uber, squeezed by insurance, increases minimum age for new drivers in California

Uber, squeezed by insurance, increases minimum age for new drivers in California

Uber has raised the minimal age requirement for brand spanking new rides-hailing drivers in California to 25 years previous because of what it described as “baselessly increased” business insurance coverage prices within the state.

The brand new coverage will solely apply to new drivers planning to make use of the rideshare platform. Those that plan to make use of the app to make deliveries by means of Uber Eats solely have to be 19 years previous. Any driver on the rideshare platform, who’s already permitted and below 25 years previous can proceed to shuttle passengers, the corporate mentioned.

“California’s insurance coverage protection necessities for rideshare are baselessly increased than almost each different automobile on the highway: as much as thirty occasions that of taxis and thirty occasions that of non-public autos,” an Uber spokesperson mentioned in an emailed assertion. “Because of these lopsided necessities, private damage attorneys have created a cottage business specializing in suing rideshare platforms like ours, pushing Uber’s California state-mandated business insurance coverage prices to rise by greater than 65% in simply two years. By rising the age requirement for brand spanking new drivers to 25, we hope to mitigate the expansion of these prices. We hope to work with lawmakers, coverage leaders, and business specialists to debate legislative and regulatory modifications that may enhance the expertise for all California drivers.”

Uber has mentioned that California laws for insuring business rideshare has pushed prices 10 occasions increased than these required for taxis in Los Angeles and San Francisco.

Uber has differentiated itself from rival Lyft by sustaining a decrease minimal driving age the previous few years — a technique that widened its pool of obtainable drivers. In 2020, Lyft pushed its a minimal driving age to 25 years previous in each U.S. state aside from New York, the place it’s nonetheless 19. Uber’s minimal age for drivers shuttling individuals is 21 years previous in the remainder of the US.


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