May 10, 2016 12:56 AM EDT
Uber, Lyft Shut Down Operations In Texas After Votes Over Driver Fingerprinting Passes
Uber and Lyft experienced losses Saturday as voters in Austin supported a petition vouching for the companies' drivers to undergo fingerprint background checks. Reuters reported the Uber and Lyft spent $8 million to oppose the city ordinance's required fingerprint criminal background checks.
The publication further reported that voters voted by 56 to 44 percent advocating for the fingerprints to not go away. Chris Nakutis, Uber's general manager, said in a statement that:
"Disappointment does not begin to describe how we feel about shutting down operations in Austin."
Uber and Lyft, though, ensure that their safety measures have been thoroughly checked and were guaranteed to be accurate. An official statement from Lyft stated on Monday, saying:
"Unfortunately, the rules passed by City Council don't allow true ridesharing to operate."
The Uber and Lyft incidents in Texas could urge the companies to conduct fingerprint background checks for the drivers of Uber and Lyft in other cities. Other cities that have Uber and Lyft offices that wrestle over fingerprint requirements are Atlanta and Houston. Atlanta, Houston and New York are headquarters of the largest offices of Uber and Lyft in the United States.
USA Today reported that Uber and Lyft planned to stop services in Austin starting May 2. Dan Driscoll, an entrepreneur, said the stoppage of Uber and Lyft's services could have a dramatic impact on the lives of Austin residents.
"Austin is a town where the weekend runs from almost Wednesday until Sunday afternoon. The reality is that people don't take cabs because logistically they're a nightmare. They don't show up when you call them."
As reported in Wall Street Journal, according to Lyft spokeswoman, Chelsea Wilson, though, Lyft would do good in doing business in Austin. Wilson said her company would really like to stay in Austin. However, Wilson reiterated that Austin's city council just don't permit ride-sharing services anymore.
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