Uber and Lyft stop services in Austin
No longer will you be able to Uber everywhere in Austin. Uber and Lyft plan on removing their services there after losing an $8 million campaign to the voters over Proposition 1.The new law, Prop 1, demands a stricter background check on ridesharing drivers, including a mandatory fingerprint-based check.
As a result to the 56 percent of the voters who opposed to the new law, Uber and Lfyt will suspend their services in Austin. Despite the ruling, Austin’s mayor Steve Adler says that the two companies are beneficial and would like the two companies to continue to operate in the capital of Texas.
In a statement, Adler said, “Uber and Lyft are welcome to stay in Austin, and I invite them to the table regardless. Austin is an innovative and creative city, and we’ll need to be at our most creative and innovative now.”
Both Uber and Lfyt are disappointed with the decision and declared to shut down in Austin by Monday.
“Lyft and Austin are a perfect match and we want to stay in the city. Unfortunately, the rules passed by City Council don’t allow true ride sharing to operate,” Lyft’scompany said. “Instead, they make it harder for part-time drivers, the heart of Lyft’s peer-to-peer model, to get on the road and harder for passengers to get a ride. Because of this, we have to take a stand for a long-term path forward that lets ride sharing continue to grow across the country, and will pause operations in Austin on Monday, May 9th.”
Uber plans on shutting down by Monday 8 a.m. “Disappointment does not begin to describe how we feel about shutting down operations in Austin,” Chris Nakutis, Uber’s Austin general manager, said in a statement. “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.”
The mayor of Austin believes that both companies will reconsider their decision to leave the city, but as of now Austin and Lyft will no longer be convenient to their residents.