In case you missed it – Prop 1 was defeated on earlier this month by 12 points, with 56 percent of voters rejecting the position taken by Uber and Lyft. Voter turnout was 17 percent.
As a reminder, the rejection of Prop 1 means that an ordinance passed by City Council in December requiring fingerprint-based background checks (by Feb. 2017) for all ride-hailing app drivers in Austin remains in place.
In response, both Uber and Lyft ceased all Austin operations two days after the election. GetMe, another local ride-hailing app company, is remaining in Austin, but as of yet, does not have nearly the amount of drivers as the other two much larger companies. However, in light of the departure of Uber and Lyft, they have reported rapid growth.
Austin Mayor Steve Adler has acknowledged that there will be pain in the coming weeks, writing on his blog that, “there is going to be greater demand than service for a period of time.” However, he also explained that he is working toward solutions to make ride-haling apps (also called Transportation Network Companies or TNCs) successful in Austin. These include:
- Remaining open to talking with Uber and Lyft about ways to reopen their operations in the city
- Exploring a local non-profit TNC with Austin entrepreneurs
- Working towards creating a pool of fingerprinted drivers (with the support of the city or through a third party, like the mayor’s previously proposed Thumb’s Up! program)
- Working toward expanding the full range of transportation options available in Austin
In the wake of the Prop 1 election, the Austin Transportation Department is proposing a deregulation of the city’s taxis in an attempt to level the playing field between taxis and TNCs. In a memo to Mayor Adler and City Council, Transportation Department Director Robert Spillar announced last week that the proposed changes would create a “truly competitive marketplace” amongst ground transportation providers.
Currently, the City of Austin manages the competition amongst taxis with franchise agreements, which essentially limit the amount of cabs allowed to operate in the city. If these new proposed changes are passed, the franchise model would end. The transportation department plans to bring the proposal to the full City Council in August.
