Austin City Council gives initial thumbs-up to ridesharing companies
By Lilly Rockwell, Austin American-Statesman | |
McClatchy-Tribune Information Services |
The taxi drivers who packed into the
After nearly four hours of testimony and debate, council members gave initial approval shortly after midnight to new rules that would temporarily legalize ridesharing companies such as Uber and
Simply legalizing the ridesharing services, which connect passengers with drivers through a location-based smartphone application, is no trivial matter. As council members discussed a range of details, they kept returning to an essential question: Should the city treat those drivers the same way it treats cabdrivers?
The proposed ordinance would allow ridesharing companies to operate without having to adhere to many of the regulations the taxi industry abides by, such as fares approved by the city, disability-friendly vehicles, city-performed background checks and exhaustive vehicle inspections.
Council Member
But the amendment stalled as other council members defended the practice. Mayor
"I think we need to go ahead and give (surge pricing) a fair test to see how it works rather than handicapping it from the outset," Riley said.
The council was also split on background checks. The city currently provides the required checks for taxi drivers (and bills them for the service). When Tovo suggested another amendment requiring the same for ridesharing drivers, Uber and
"Why would the city of
The council did vote to make some changes to the ridesharing ordinance -- for instance a Tovo amendment requiring that ridesharing companies report data about their pricing, rider pick-up and drop-off patterns, and driver information monthly instead of quarterly.
But for the most part, efforts to add stronger regulations failed, either because of a lack of votes or because the council wanted more time to examine such complex issues as insurance requirements before coming back for a second vote. Some council members warned they might change their votes of support when the ordinance comes up for a final vote.
Council Member
The fight between ridesharing companies and taxi drivers is a familiar business battle between an old-school, heavily regulated and locally based industry and scrappier, technologically savvy and well-funded ridesharing startups.
Taxi drivers say it's fundamentally unfair to allow these ridesharing companies to operate without adhering to the same regulations as taxis.
"It costs me a dollar every time I pick somebody up at the airport," Yellow Cab taxi driver
But supporters of ridesharing companies -- who showed up by the dozens wearing mostly dark shirts -- said the drivers provided a faster, more reliable service than taxis and filled a much-needed transportation gap.
"With Uber and
Uber driver
But when the city started cracking down on Uber and
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Where things stand
Under current city code, a driver providing rides for hire must have a chauffeur's permit and must work for a permitted transportation company. Drivers affiliated with ridesharing companies have neither. Since the first wave of ridesharing drivers hit the streets of
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