A spokesperson for Uber has said that Colorado House Bill 25-1291 could lead to the shutdown of its operations in the state, with significant consequences for both drivers and riders. This statement was shared in a provided quote.
"We urge Governor (Jared) Polis to veto HB25-1291," Uber said, warning that the bill—"developed behind closed doors and driven by the financial interests of billboard attorneys"—would "force Uber to shut down operations," thereby "stripping thousands of drivers of the flexible earning opportunities they rely on." The company argues that even in its narrowed form, the bill’s private-right-of-action provision will spur opportunistic lawsuits over harms already addressable through Colorado’s Public Utilities Commission and civil-tort system, creating a "hidden tax" on riders and drivers that benefits trial lawyers more than public safety.
While the final version of HB25-1291 narrows its arbitration restrictions to claims involving sexual misconduct or sexual assault, transportation network companies (TNCs) have flagged the provision as redundant and potentially confusing. According to Uber, federal law already bars forced arbitration in such cases. In redlines submitted during the legislative process, Uber noted that its arbitration agreement has excluded these claims for years, aligning with both federal requirements and public policy. The company warned that layering state law on top of federal protections could introduce unnecessary legal ambiguity and compliance friction without delivering new benefits to consumers.
According to The Perryman Group, excess tort costs impose a significant burden on Colorado households, driving up both inflation and lost earnings. In Colorado, these costs exceed $5,700 per household annually—more than the national average—due to diverted resources, higher insurance premiums, and reduced economic productivity.
Uber Technologies, Inc., headquartered in San Francisco, California, is a global mobility and delivery platform founded in 2009 by Garrett Camp and Travis Kalanick. Initially launched as UberCab in San Francisco in 2010 before rebranding later that year to Uber, it offers various services beyond ride-hailing including food delivery through Uber Eats and freight transportation via Uber Freight. As of 2024, Uber operates in over 70 countries and 10,500 cities worldwide.