Uber has announced that it is raising the minimum age for most of its new drivers in California to 25 due to the surging costs of commercial auto insurance in the state. The new rule, which came into effect on Thursday, applies solely to drivers who sign up to transport passengers with Uber’s ride-hailing service, not those delivering for Uber Eats. Prior to this change, drivers as young as 19 could sign up.
However, drivers under the age of 25 who activated their accounts before Wednesday will still be permitted to drive for Uber.
According to a company statement, insurance rates for Uber’s California drivers are significantly higher than those for personal vehicles or taxi drivers. The company attributes this to personal injury attorneys specializing in lawsuits against rideshare platforms, which has led to a rise of over 65% in Uber’s California state-mandated commercial insurance costs in just two years.
Uber maintains commercial auto insurance for its drivers, including at least $1 million of liability coverage once a ride is accepted. Personal auto insurance generally does not cover activity on ride-hailing apps.
Uber’s main competitor, Lyft, already has a minimum age requirement of 25 for its drivers. As of Thursday, drivers under 25 attempting to sign up with Uber will receive an email explaining the new policy.
Uber’s decision to increase the minimum driver age coincides with a resurgence in passengers following a downturn due to the pandemic, with the company now handling more rides than in 2019.
The new age restriction may also be part of Uber’s effort to control costs as it aims for consistent profitability. While Uber Eats, which makes up one-third of the company’s revenue, will continue to allow drivers under 25, the ride-hailing platform is seeking to work with lawmakers and industry experts to improve the experience for all California drivers.