AUSTIN -- Austin City Council members will let voters decide the fate of new regulations on ridesharing companies, such as Uber and Lyft.
Council voted overnight Thursday into Friday not to adopt an ordinance drafted as part of a petition that gathered support of more than 65,000 people. The only other option in response to that petition, is to send the ridesharing rules to a public vote on May 7. Council hasn't officially called the election, but plans to do so next week.
The rules call for a gradual move to near-mandatory fingerprint background checks for drivers employed by Transportation Network Companies, or TNCs, by 2017. Voters will essentially be able to choose between those rules, and reverting back to older, less stringent regulations approved by the old city council in 2014.
The TNCs believe their current background checks, along with GPS tracking and other safety measures, are sufficient to keep drivers and riders safe. Some have threatened to pull their services from the Austin market should the new, more strict rules be approved.
Estimates put the cost of the May 7 election somewhere between $500,000 and $900,000.
Both Uber and Lyft released statements hours after the city council decision.
Uber's statement:
"Tens of thousands of people have made it clear they want to keep ridesharing in Austin. Tonight, the Council missed an opportunity to listen to those voices and prevent a costly election. We are inspired by the Austinites who have offered their continuous support, and we are optimistic that they will speak out once more with their votes on May 7."
Lyft's statement:
"Over 65,000 Austinites spoke up in support of ridesharing and have earned the right to a May 7 election. We look forward to continued collaboration with the diverse array of groups dedicated to keeping ridesharing as a safe and affordable option in Austin."
