Impending Uber, Lyft Pull Out Envelops Austin Over New Regulations Dispute

According to Lyft and Uber, the new rules required on them make it difficult to keep continuing business models. The retreat becomes a de facto victory for the taxi cab industry, which has cited ride-sharing services which changed their business around the country.

Based on USA TODAY report, Uber and Lyft spent around $8 million on the campaign directing the Saturday's vote which was lost a 56% margin, to overturn rules chosen by the city that it seems difficult to deal with.

Uber and Lyft were allowed to self-regulate when they started business. However in December, a set of rules were adopted by the city council which includes fingerprinting of the drivers drawing strong objections from both companies which they think is unnecessary since they have their own background check.

The said regulations will be deliberated in the next year's legislative session. It aims to be "consistent and predictable" for the companies as stated by Republican ride share supporter Sen. Charles Schwertner of Georgetown, reports the Houston Chronicle.

He was among several state lawmakers to strongly disapprove Saturday's vote in Austin giving support to regulations requiring rideshare drivers to submit to fingerprinting background checks aside from providing report data about the companies' operations, among other rules.

The companies stated that they will stop their operation in Austin starting Monday.