Uber ceased operations in Kansas on Tuesday, saying new a regulation has made it "impossible" to continue. It is the first U.S. state the company has backed away from.
At issue is Senate Bill 117, which required Uber and its contracted drivers to disclose how fares are calculated, the driver's license plate number, and more. Uber was on board with almost all of the new regulations, as it was already in compliance with the vast majority of them.
As CNN Money reported, Uber did take issue with the level of insurance the new bill required, however. Uber has insurance and requires its drivers to have insurance, but said the level of insurance required by Kansas is excessive, and far beyond the requirements of other states.
Republican Gov. Sam Brownback originally vetoed the legislation, saying the regulations were "premature," but that veto was overridden by the Kansas Senate in 96-25 vote.
The Associated Press reported via Yahoo News that it was the first time a Brownback veto had ever been overridden.
"To over-regulate or improperly regulate an emerging industry before the marketplace actors make proper arrangements is to invite more problems, not less," he said upon making his veto.
Uber commenced service in Kansas in 2014, and has since recruited a pool of 700 locally subcontracted drivers who operate primarily in Wichita and Kansas City.