On-demand car services Uber and Lyft announced suspension of services in Austin, Texas, following a vote that will require drivers submit to fingerprinting and city background checks. Drivers previously had background checks performed by Uber, but Austin wanted tighter controls to keep passengers and drivers safe.
The city of Austin said that it welcomes both car-hailing services so long as they play by the city’s rules. Neither want to, however, and both planned to stop all services in Austin beginning Monday.
“We hope the City Council will reconsider their ordinance so we can work together to make the streets of Austin a safer place for everyone,” Uber told CNBC. “Disappointment does not begin to describe how we feel about shutting down operations in Austin.” Lyft said that the stricter controls on background checks “Make it harder for part-time drivers,” which ultimately means fewer rides for customers.
Both firms can still meet with the city of Austin to try to come to terms, but don’t expect either app to work until a deal is reached.