D&S Researcher Alex Rosenblat on the fallout of the Austin Transportation’s showdown with Uber and Lyft:
Uber allied with Lyft in Austin to lobby against an ordinance passed by the city council which requires ridehail drivers to undergo fingerprint-based background checks. The two companies spent $8.1 million combined to encourage (i.e. bombard with robo-texts) Austin voters to oppose the ordinance in a referendum vote called Proposition 1. If local cities take a stand against Uber or Lyft’s demand about background checks, and they prevail, that could produce a ripple effect in other cities that have regulatory demands. The local impact on Austin is a secondary concern to the global and national ambitions of imperial Uber and parochial Lyft. When they lost the vote on Prop. 1, they followed through on their threats to withdraw their services.