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Uber, Lyft to leave Austin after voters reject alternative to fingerprinting drivers

By Allen Cone

AUSTIN, Texas, May 8 (UPI) -- Uber and Lyft are threatening to leave Austin after residents rejected a measure that would eliminate a city requirement to fingerprint drivers.

Austin voted 56 percent to 44 percent against Proposition 1 on Saturday, which would have allowed the companies to continue using their own background checks. Instead the city will proceed with its ordinance approved in December that requires drivers to undergo fingerprinting checks by Feb. 1. The ordinance also bans drivers from stopping in traffic lanes to pick up and drop off passengers.

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Officials with Uber and Lyft say they don't want to operate in the city under these conditions.

Uber will stop service Monday at 8 a.m. and Lyft at 5 a.m.

"Disappointment does not begin to describe how we feel about shutting down operations in Austin," an Uber spokesperson said in a statement. "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."

A Lyft spokesperson said, "The rules passed by City Council don't allow true ridesharing to operate. Instead, they make it harder for part-time drivers, the heart of Lyft's peer-to-peer model, to get on the road and harder for passengers to get a ride. Because of this, we have to take a stand for a long-term path forward that lets ridesharing continue to grow across the country."

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The two companies plan to operate outside the city limits.

Uber and Lyft spent more than $8 million and bombarded voters with mailers, ads, phone calls and text messages.

"The people have spoken clearly tonight. Uber & Lyft are welcome to stay and I invite them to the table regardless," said Austin Mayor Steve Adler.

In 2015, the Texas Legislature rejected a statewide ride-hailing regulation bill backed by the ride-booking companies.

Other cities statewide are considering stricter background check regulations for drivers. The companies have announced plans to leave Houston over fingerprints.

Some companies have left cities over fingerprinting but returned when the rules were instituted in their favor.

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