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Uber and Lyft Shut Down Operations in Austin

May 09, 2016
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3 min read
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Uber and Lyft Shut Down Operations in Austin
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In response to the defeat of Austin Proposition 1 on Saturday, Uber and Lyft have shut down operations in Austin.

Both companies cite the Austin City Council actions in their decision. Lyft says that it "cannot operate in Austin" while Uber states "we simply cannot operate under the City’s new rules."

However, neither company is actually banned from the city. While the City Council did vote in more regulations for the companies, both are currently operating in other cities with the same regulations. So, we can be hopeful that they'll return to Austin soon.

Background

In December, the Austin City Council voted 9-2 to instate fingerprint-based background checks for drivers — similar to the regulations Uber and Lyft currently operate with in NYC and Houston.

Both companies threatened to leave if the City Council passed the bill. However, once the bill passed, the companies didn't leave; instead they started a petition to send the rules to a vote. Their political action committee, Ridesharing Works for Austin, was able to collect 26,320 signatures, enough for force a vote on the issue.

The Vote

After the vote, Uber has shutdown rideshare operations in Austin — leaving only UberEats available when you open the Uber app in Austin Monday morning.

With the proposal going to the polls, the company-funded PAC poured an incredible amount of money in to the vote. As of the most-recent spending reports, the PAC spent $8.1 million — six times more than any other campaign in Austin city history — on mailers, tv ads, phone drives, possibly illegal robotexts and numerous lawn signs.

After the vote, Lyft has shutdown rideshare operations in Austin.

However, it seems to have all been for naught. This past Saturday (May 7), Austin voters voted against the bill to eliminate fingerprint-based background checks by a margin of 55.8 to 44.2.

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Alternatives

The Austin Airport Flyer is an easy and cheap way of getting to or from the airport.

If you're visiting Austin anytime soon, here are some options to keep in mind:

  • Austin's "Airport Flyer" route #100 runs from the airport to downtown and up to the University of Texas campus for just $1.75 each way. I rode the bus yesterday and was one of only two people on the bus. That's likely to change soon.
  • Rideshare company Get Me is still operating in Austin.
  • If you must, Austin city taxis are still available. However, before Uber and Lyft became staples in Austin, taxis were infamous for breaking city code.

Bottom Line

Due to the vote and Uber and Lyft's decision to leave Austin, many drivers no longer have a job this morning.

Uber and Lyft have voluntarily exited the Austin market, but neither are prevented from returning any day. Their exit means approximately 10,000 drivers are out of work, and many Austinites have less options to find a ride — facts that the companies will likely use when trying to negotiate further with the Austin City Council. This strategy has worked out well for them in past negotiations.

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  • Intro Offer

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  • Annual Fee

    $325

  • Recommended Credit

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Why We Chose It

There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)

Pros

  • 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
  • 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
  • Packed with credits foodies will enjoy
  • Solid welcome bonus

Cons

  • Not as useful for those living outside the U.S.
  • Some may have trouble using Uber and other dining credits
  • You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
  • Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
  • Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
  • Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
  • $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
  • $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
  • $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
  • $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
  • Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
  • No Foreign Transaction Fees.
  • Annual Fee is $325.
  • Terms Apply.