Uber and Lyft Leave Austin After Voters Reject Less Regulations on Ride-Hailing Apps.
This weekend Austin voters went to the polls vote on Prop 1, which if passed would have eased the regulation on finger prints and background checks for rideshare drivers in the city. The proposition failed, only garnering 44% of the Yes vote. Uber and Lyft spent $8million campaigning for Prop 1, but that may have left a bad impression on voters. If Prop 1 failed, both Uber and Lyft said they would leave Austin in a kind prisoners dilemma. True to their word, on Monday both companies announced they were halting service in the city.
What does this mean for ride-sharing? Will more cities push for more fingerprinting and background checks for ridesharing drivers in the name of public safety? Does fingerprinting actually make riders safer?
Research in this area suggests that rideshare companies don't need more safety regulation than taxis, but that they fit awkwardly into the existing regulatory framework. Though how different is ridesharing to taxis? And can the industry be regulated to benefit consumers and drivers? Time will tell.