Uber, Lyft set to leave Austin, Texas over fingerprinting rule
Uber, Lyft set to leave Texas city over fingerprinting
rule
May 8, 2016
Washington (AFP) - Ride-sharing services Uber and Lyft
are set to quit the Texas city of Austin after voters said fingerprinting
should be part of driver background checks, reports said.
The companies had poured $8.6 million into a campaign to
keep fingerprinting, which can be expensive and time-consuming, out of driver
checks.
Results from the vote on Proposition One -- the most
expensive campaign in city history -- showed 56 percent in favor of fingerprint
checks, compared 44 percent against, according to the Austin American-Statesman
newspaper.
The vote came after the City Council passed an ordinance
in December that, among other rules for ride-sharing companies, required their
drivers to undergo fingerprint-based background checks by February 1, 2017.
Uber and Lyft announced after the results of Saturday's
vote that they were set to suspend operations in Austin, the capital city of
Texas, on Monday morning.
"Disappointment does not begin to describe how we
feel about shutting down operations in Austin," Uber Austin general
manager Chris Nakutis 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."
Lyft added in its own statement: "We're very
disappointed to leave the Lyft Austin community -- and we hope to come back soon.
If you'd like to help make Austin rideshare-friendly again, reach out to your
City Council member and tell them."
Currently, New York and Houston are the only US cities
that require fingerprinting for ride-sharing drivers, media reports said.
Uber has threatened to pull out of Houston if
fingerprinting rules aren't changed, saying they hamper driver recruitment.
Business is booming for ride-sharing companies but they
face tricky regulatory issues in cities around the world.
They are up against stiff resistance from traditional
taxi drivers, as well as bans in some places over safety concerns and questions
over legal issues, including taxes.
On Wednesday, San Francisco-based Uber announced a policy
board that includes a former European Commission vice president to help the
company overcome regulatory and other hurdles.
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