Uber and Lyft just suspended services in this major US city, and yours could be next
If you're running late tomorrow morning and considering calling an Uber or Lyft to get to work on time, looks like you're out of luck.
Well, if you live in Austin, Texas that is.
From May 9 onward, ride-sharing seekers in the city will not be able to access rides through the apps as both Uber and Lyft have suspended Austin-based services.
This comes in response to the companies' opposition of a new set of laws that enforces new regulations on background checks for drivers.
Proposition 1, the set of laws passed in Austin requiring drivers to receive stricter criminal background checks (including fingerprinting, for example), passed by about a 56 percent margin.
Uber and Lyft responded that these new regulations are simply not conducive to ride-sharing.
The companies are not pulling out of the city without hesitation, however.
Uber's Austin general manager, Chris Nakutis stated:
"Disappointment does not begin to describe how we feel about shutting down operations in Austin."
Representatives from Lyft took a firmer stance, explaining:
"We have to take a stand for a long-term path forward that lets ride-sharing continue to grow across the country, and will pause operations in Austin on Monday, May 9th."
It's been reported that both ride-sharing companies spent a combined $8M to promote their opposition to the new set of stricter laws that were being proposed.
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Some believe that this could be a negotiating tactic in order to get regulations changed moving forward, which begs the question of whether or not what happened in Austin will start happening in other cities across the country.
The Associated Press reported that Chicago, Atlanta and Los Angeles are in talks of passing legislature that would require stricter requirements for drivers on both apps.
If so, Austin may be the first (but not the last) city where ride-sharing companies pull services from.
Here's a look at different Uber and Lyft services around the world:
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