Mario Nawfal, founder of IBC Group, said that a proposed Colorado bill could increase litigation risk and threaten Uber’s ability to operate in the state.
“Uber is warning it might pull out of Colorado if a new rider safety bill becomes law,” said Nawfal. “The bill would force drivers to record every ride with continuous audio and video. Uber says that’s a privacy nightmare with zero proven safety benefit. The company blasted the proposal as deeply flawed and a major technical and financial burden.”
Colorado’s House Bill 25-1291, known as the Transportation Network Company Consumer Protection Act, has passed the legislature and awaits Governor Jared Polis’s decision. The bill introduces new safety requirements for ride-sharing companies, including stricter background checks and protocols for driver deactivation. However, according to Colorado Newsline, it has faced significant opposition from companies like Uber and Lyft. These companies argue that certain provisions, particularly those related to legal liabilities, are unworkable and could lead them to cease operations in the state.
TNC (Transportation Network Company) companies assert that a remaining provision in Colorado’s HB25-1291 prohibiting arbitration between rideshare companies and riders conflicts with established federal law. The Federal Arbitration Act requires states to enforce arbitration agreements and prohibits laws that seek to restrict them. This position is supported by recent Supreme Court rulings in cases such as American Express v. Italian Colors and Kindred Nursing, which clarify that state laws cannot override federal protections for arbitration.
Nawfal is an Australian serial entrepreneur and angel investor, currently serving as the Founder and Chief Executive Officer of IBC Group. Prior to his ventures in blockchain, he founded Froothie, HX, and Optimum Appliances—some of the world’s largest kitchen appliance and wellness brands. In 2017, he established IBC Group, and in 2020 co-founded NFT Technologies where he serves as CEO.
