Uber, Lyft Suspend Service in Texas Capital Because of Background Checks

Uber and Lyft have suspended ridesharing service in Austin, Texas after voters decided against overturning city requirements that include fingerprint-based background checks for their drivers.

Nearly 56 percent of voters rejected a proposition Saturday that would have repealed rules the Austin City Council approved in December.

Under the rules, drivers must undergo fingerprint-based background checks by Feb. 1, 2017. Uber and Lyft prefer name-based checks. Their vehicles must be identified for hire and they cannot stop in traffic lanes for passenger drop-offs and pick-ups.

The companies messaged their customers Monday to say they are not operating in Austin.

Uber and Lyft had poured nearly $9 million into their campaign to overturn the rules.

Related:

• ‘Cool’ Austin Icy Toward Uber, Airbnb, Bristling Tech Sector
• Uber Facing Another Setback As Texas Passes on Ridesharing Law

Topics Texas Sharing Economy Ridesharing Uber