Uber and Lyft threaten to leave Austin over fingerprint ID vote

Uber and Lyft just lost an expensive game of political brinkmanship.

In a case billed as Silicon Valley money versus Texas public servants, a vote was held Saturday in Austin to decide whether the city's existing rideshare laws would be overturned in favor of the companies' preferred rules, contained in Proposition 1.

Of particularly concern to Lyft and Uber was the city's requirement that their drivers undergo a fingerprint-based background check, in addition to existing security checks -- a burden the companies claimed was untenable. The pro-Proposition 1 lobby group, Ridesharing Works for Austin, pointed to reported drops in drunk driving, among other issues, in an attempt to convince the Austin public. It didn't work.

According to the Austin-American Statesman, 44 percent voted in support of Uber and Lyft's legislation, while 56 percent voted against. Because the ordinance was defeated, rideshare vehicles must be prominently identified and are prohibited from loading and unloading passengers in travel lanes, as well as the stringent fingerprinting requirements.

The result wasn't for lack of trying: The rideshare companies poured more than $8 million into the pro-Proposition 1 effort, the outlet reported, and Lyft even enlisted Texas' favourite fictional son, Friday Night Lights star Taylor Kitsch, as a spokesperson.

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It's a rare loss, especially for Uber, which has been pursuing its regulatory agenda in cities globally with significant success. It's also battling Houston's government over that city's fingerprinting requirements, as well as in other U.S. cities.

"Uber, I think, decided they were going to make Austin an example to the nation," political consultant David Butts, leaders of the anti-Proposition 1 campaign, told the Austin-American Statesman. "And Austin made Uber an example to the nation."

The two companies threatened to leave Austin if their preferred ridesharing regulations were voted down, and by all accounts, it looks like they are going to follow through. On its website, Lyft said operations would "pause" in the city as of Monday, May 9 at 5 a.m.

"The rules passed by City Council don't allow true ridesharing to operate," a Lyft spokesperson told Mashable. "Instead, they make it harder for part-time drivers ... Because of this, we have to take a stand for a long-term path forward that lets ridesharing continue to grow across the country, and will pause operations in Austin."

Uber has been approached for comment.

On Twitter, Austin Mayor Steve Adler invited Uber and Lyft to stay put and continue negotiations. 

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The people of Austin, for their part, will no longer be bombarded with pro-ridesharing leaflets and TV spots, but it also looks like they'll no longer have Uber or Lyft. Surely this breakup can't last forever?

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UPDATE: Tuesday, May 10, 2016 at 4:08 a.m. EST Lyft statement added.

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