Almost exactly a year after both Lyft and Uber chose to stop servicing Austin, Texas, new legislation passed at the state level that may signal their imminent return to the area.
The new laws nullify the city restrictions that have kept Uber and Lyft out of Austin.
After passing both the state House and Senate, House Bill 100 will soon be making its way to Governor Greg Abbott’s desk, where he is expected to sign the legislation, officially placing the regulation of the ridesharing sector in the hands of the Texas Department of Licensing and Regulation.
One of the bill’s sponsors, Sen. Charles Schwertner, spoke on the Senate floor on Wednesday expressing that his primary goal in sponsoring the bill was to put the success or failure of ridesharing companies in the hands of the market and not the government.
While this would still give the state of Texas the power to pass regulations on the industry, it will nullify city restrictions like those that have kept Uber and Lyft from giving rides in Austin.
The Cronies Strike Back
The ridesharing sector has faced a constant uphill battle when it comes to justifying its existence to the state. While the popularity of ridesharing has proven that consumers prefer using their smartphones to hail a ride rather than attempting to flag down a cab that may or may not choose to ignore them, the taxi industry has been less than pleased with this unexpected competition.
In an act of protest, both Lyft and Uber left the city of Austin.
But instead of adjusting its model to be more compatible with our modern, technology-reliant society, the cab companies have sought to use the state’s power to create a monopoly in the market. Claiming that ridesharing endangers riders, these cronies have launched national campaigns aimed at scaring consumers from utilizing apps like Uber and Lyft.
Unfortunately, these scare tactics worked on residents of Austin, who voted in favor of harsher restrictions and screening processes for ridesharing drivers.
