Uber, Lyft may return to Austin
Texas lawmakers put rules in state hands
Uber and Lyft — the ride-hailing behemoths embattled in this city — may soon return to the Texas capital.
Lawmakers passed a bill this week that would put regulation of the companies into state hands, overriding municipal rules. Uber and Lyft unplugged from Austin last year after a contentious referendum in which voters chose stricter background checks for the firms’ drivers.
That battle — one of the stiffest faced by the companies — would be nullified once Gov. Greg Abbott signed the statewide bill into law. He has signaled his willingness to do so. “Buckle up,” he tweeted Wednesday. “Coming soon.”
The move was applauded by supporters who said Austin’s ordinance forced the popular companies to flee one of the most tech-centered cities in the country. Uber officials indicated they were ready to return to Austin and other cities that had strict rules governing ride-hailing companies.
“We look forward to making Uber available in more cities across Texas and continuing to serve drivers, riders and the communities in which they live,” Sarfraz Maredia, general manager for Uber Texas, said in a statement.
Some worried that Austin’s hard-fought battle against the corporations would go to waste and pointed to a broader issue of state-vs.-local control. Austin’s clash with Uber and Lyft was closely watched nationally because other cities had similar is- sues with the firms’ insistence to self-regulate, said Josh Jones-Dilworth, an Austin-based tech entpreneur and investor who was on a city task force to try to get the companies to stay. “I’m disappointed,” he said. “I believe in self-governance at a local level.”
Jones-Dilworth said he wasn’t surprised by lawmakers’ decision to take up the matter. “Uber found a far more friendly listener in our state Legislature,” he said.
The conflict in Austin began in 2015, when city leaders passed an ordinance requiring ride-hailing drivers to be fingerprinted. Uber and Lyft threatened to leave town and gathered 65,000 signatures to put the issue to a vote. Despite the firms’ spending $8 million to sway voters, they lost the referendum failed. Uber and Lyft apps in Austin went dark the next day.
The statewide bill would remove the fingerprinting requirements, allowing the companies to do their own name-based background checks on drivers. The measure would override any municipal ride-hailing ordinances and put regulation under control of the Texas Department of Licensing and Regulation. Background checks on drivers would be mostly up to the companies.
After Uber and Lyft left, other ride-hailing companies began operating in the city, fulfilling the fingerprinting background checks of drivers. RideAustin, a nonprofit company created in the wake of last year’s clash, indicated this week it may have to close if Uber and Lyft come in and undercut prices.
Austin Mayor Steve Adler voiced his displeasure in the bill. “I’m disappointed that the Legislature chose to nullify the bedrock principles of self-governance and limited government by imposing regulations on our city over the objection of Austin voters,” he said in a statement.
“We look forward to making Uber available in more cities across Texas and continuing to serve drivers, riders and the communities in which they live.” Sarfraz Maredia, general manager for Uber Texas