Background Check Laws Push Uber, Lyft From Austin

There are threats, and then, there are threats that get backed up.

Engadget reported on Sunday (May 8) that Uber and Lyft have decided to make good on their stated intent to leave Austin, Texas, as of this morning (May 9) in the wake of new background check rules.

As has been reported, a majority of voters, at 56 percent, rejected a ballot measure known as Proposition 1, which would have kept the city from enforcing demands to conduct fingerprint-based background checks and also would have banned pickups from occurring in traffic lanes. The firms, according to the site, would have had to contend with both regulations, which may have slowed business and would have a deleterious effect on new hires.

And yet, noted Engadget, Austin Mayor Steve Adler said that the two ridesharing companies would be “welcome to stay” and that the city is open to continued negotiations. But, said the site, hardball remains a favorite tactic of the companies, and they seem to mean what they say, as Uber said it remains disappointed in the vote and Lyft stated that this is a stand for a “long-term path forward.” Against that backdrop, said Engadget, it’s doubtful that the two companies will be quick to reemerge and restart operations in the city.

And, on the other side of the equation, the people who voted down the proposition are staunch in their defense of comprehensive vetting processes and that the traffic lanes will be relatively clear of what might be termed “mid-street” pickups. But drivers who were seriously reliant on the two companies for work or side gigs may be left scrambling to replace that lost income.