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Nearly 56 percent of voters rejected a proposition Saturday that would have repealed rules the Austin City Council approved in December.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
Was this article valuable?
Here are more articles you may enjoy.
Florida Insurance Costs 14.5% Lower Than Without Reforms, Report Finds 
Munich Re Unit to Cut 1,000 Positions as AI Takes Over Jobs 
Kansas Man Sentenced for Insurance Fraud, Forgery 
Judge Awards Applied Systems Preliminary Injunction Against Comulate 
