Uber has raised the minimum age for most new California drivers to 25. The American transportation firm made this decision due to increased state commercial auto insurance premiums.
The new guideline only applies to Uber drivers, not Uber Eats delivery drivers. Before this, drivers as young as 19 could join the platform. According to Uber, drivers under 25 whose accounts were authorized before the regulation change will not be impacted and may continue to work for the company.
Surging Insurance Costs
Due to Uber's Californian drivers' disproportionately high insurance costs compared to private car owners or taxi drivers, the ridesharing company decided to apply this new age restriction. According to AP News, Uber stated that regulatory changes have increased the number of personal injury claims targeting ride-hailing services, raising its commercial insurance costs by more than 65% in two years.
Uber exceeds the minimum criteria by providing its drivers with commercial auto insurance that includes at least $1 million in liability coverage once a trip is approved, even though all 50 US states require it. This coverage exceeds that of personal motor insurance, which generally excludes ride-hailing.
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The new Uber age restriction of 25 for new drivers is similar to that of Lyft, the firm's major rival. The new policy will be explained in an email notice sent to new Uber applicants under 25, along with other details, starting Thursday.
This change in eligibility coincides with an increase in passenger demand following a challenging period due to the COVID-19 pandemic. Now that Uber's rider counts have surpassed those from 2019, there is hope that the firm is getting closer to achieving its objective of continuous profitability, per ABC News.
Police Update on Netflix Employee Missing After Riding an Uber
In a separate update, the San Jose Police Department published details on the disappearance of 22-year-old Netflix software developer Yohanes Kidane, who went missing this week after taking an Uber. Security footage showed him leaving his downtown San Jose home and entering an Uber-branded automobile.
According to a Hindustan Times report, the police investigation found no criminality related to Kidane's disappearance. Detectives say he took a ridesharing from San Jose to San Francisco and disappeared there. The inquiry with the California Highway Patrol and US Coast Guard seeks Kidane's location.
The San Jose Police Department said they would keep Kidane's family updated on the investigation until he is found.
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