Taxi apps Uber and Lyft have said they will leave the city of Austin in Texas after the public rejected legislation that would’ve enabled their drivers to work without biometric checks. This means that the bill requiring fingerprint-based background checks will proceed, with new drivers needing to pass the check before being able to drive. While both Uber and Lyft lobbied hard for its passage and spent a combined $8 million plus in lobbying, 56 percent of Austin’s voters cast their ballots against the measure. The ride-hailing companies believe their current background checks are rigorous and ensure safety, but the voters in Austin felt the addition of fingerprinting would make the checks even more thorough. Their vehicles must be identified for hire and they can not stop in traffic lanes for passenger drop-offs and pick-ups.
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Now Uber and Lyft say they’re “pausing” operations in the city as they figure out where to go from here.
“Disappointment does not begin to describe about how we feel about shutting down operations in Austin”, said Uber’s general manager in the central Texas city, Chris Nakutis, in a statement on Sunday.
The nay vote doesn’t prohibit Uber and Lyft from operating in Austin, and indeed, on Saturday night mayor Steve Adler invited the companies to stay. He added: “We hope the City Council will reconsider their ordinance so we can work together to make the streets of Austin a safer place for everyone”. “Contact your City Council member now to tell them you want Lyft”. The Austin election marked the first time a major U.S. city put the regulations to a vote. “The voters have spoken and they want these requirements and I know that we can do that…” It’s also battling Houston’s government over that city’s fingerprinting requirements, as well as in other USA cities.
Saturday’s election marks the first time that a major United States city has held a popular vote on stricter regulations for ride-hailing companies. Houston, also fighting over fingerprint requirements, could see a similar self-exile from Uber and Lyft. Both Uber and Lyft also must conform to regulations implemented at RDU International Airport.
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Uber and Lyft said Monday they are suspending their ride-hailing services in Austin-the home of the South by Southwest festival-in the wake of a driver-fingerprinting fracas.
