Texas Legislature Overrules Austin, Allows Uber and Lyft to ReturnThey're expected to open Monday right after the governor signs the bill into law.

ByDavid Lumb

This story originally appeared onEngadget

Shutterstock

When Austin citizens voted in May 2016 to require fingerprint-based background checks from ride-sharing drivers and ban passenger pickup in traffic lanes, Uber and Lyft promptly pulledoutof the city. But both are scheduled torestartoperations in the city next Monday thanks to legislation passed by the Texas Legislature this month. Thebilloverrides local ordinances like Austin's that regulate ride-hailing services and only needs Gov. Greg Abbott's signature to become law.

While Lyft and Uber are celebrating, the city isn't. The bill, HB 100, would override the state's 20-plus local ordinances andrequireride-sharing companies to conduct criminal background and sex offender checks for drivers -- but allow them to use ones they prefer. Uber's internal checks havefailedto discover criminal records before, and when Massachusetts enacted tougher background research rules last month, over 8,000 current drivers wererejectedfor violent/sexual crimes or drunk or reckless driving. Doubtless these enhanced checks aim to weed out predatory chauffeurs -- like Uber drivers who have sexually assault passengers, which the company hastriedwiggling out of legal responsibility for.

Once Lyft and Uber activate their drivers, both ride-sharing titans will have to compete with local operators that sprung up in the interim. Companies like Fare and Fasten along with the nonprofit ride-hailing service RideAustincompliedwith Austin's rules, which were passed by the city to raise the standards of ride-sharing drivers to match taxi drivers (who are required to submit fingerprints and pass background checks). Whether the homegrown services retain their lead once the industry-dominating Lyft and Uber return depends on the passengers -- and how they'll vote with their wallet.

Wavy Line
David Lumb

Contributing Editor

David Lumb is a NYC-based tech journalist and a contributing editor at Engadget

Editor's Pick

Related Topics

Business News

'Treat People the Way You Want to be Treated': Pilot Goes Viral For Rant Directed at 'Selfish' Passengers

The American Airlines pilot wasn't tolerating any unruly behavior.

Thought Leaders

Your Top 10 Business Building Tips from Shaquille O'Neal, Amy Porterfield, Pat Flynn and More

10 experts share their best advice on how to get unstuck and multiply your revenue.

Growing a Business

What Tennis, Microsoft and Starting My Own Company Taught Me About the Mind's Role in Achieving Success

In both sports and business, it's not about your position, past wins or how many supporters you have. If you cultivate the right mindset, you'll be prepared for any competition in the world.

Business News

People Poured $10 Billion Into Apple's New Savings Accounts — But Goldman Sachs Wants to Pull the Plug

Apple is developing its own payment processing technology and has big plans for its financial-services offerings.

Money & Finance

Want to Become a Millionaire? Follow Warren Buffett's 4 Rules.

企业家是不能过度指狗万官方望太多a company exit for their eventual 'win.' Do this instead.

Growing a Business

How These Two Rockstars Rocked The Skincare Industry

Entrepreneur+ will be hosting a special Q&A with the brilliant minds behind the brand, Mother Science.