A new ride-hailing, or transportation network company, landscape has emerged after the failure of an Uber- and Lyft-backed ballot proposition to reverse the city's fingerprint-based background check mandate for drivers, among other local laws. Seven companies operate in the city and are compliant with its requirements for drivers:
All have achieved the 99 percent compliance rate needed to continue operating in the city of Austin as of Feb. 1, according to a March 8 city of Austin memo.
Here are some takeaways from the update on how ride-hailing companies in Austin are complying with the ordinance.
Less than 3 percent of ride-hailing applicants are denied the ability to work locally based on disqualifying offenses found in their background check.
According to the memo, of the 274 applicants denied permits, 26 have had appeals reviewed by Rob Spillar, Austin Transportation Department director, with 15 granted permits upon review.
The number of ride-hailing trips provided in Austin increased by more than 30,000 from December to January.
Comparatively, about 450,000 trips were offered in November, when there were nine ride-hailing companies operating in Austin.
Since May, five companies have ceased operating in Austin.
Uber and Lyft voluntarily stopped service in Austin after the failure of Proposition 1 in May. Since then licensed operators who have also stopped operating in Austin include InstaRyde, ReDriver Tech and ScoopMe. The phased-in rate of compliance with the city ordinance began May 1 with 25 percent. On Aug. 1, 50 percent was the standard. Dec. 1 saw the standard rise to 85 percent, and Feb. 1 to the final rate of 99 percent. The rate of compliance is calculated by either the percentage of hours driven by compliant drivers or miles driven by compliant drivers.
The city has collected more than $600,000 in fees from companies to operate in Austin.
Tride has not paid its fee to the city to support administrative costs, in-field compliance and incentives during special events. The city has received partial payments from Fare, according to the memo.
Austin is offering incentives during such special events as South by Southwest.
Ride-hailing drivers that complete their pickups and dropoffs in 5 minutes are eligible to receive the incentives.
Drivers may have to pass an exam in the future.
The city is considering requiring drivers to take an exam to renew their TNC permit.
