RideAustin, a local ride-hailing nonprofit, announced Tuesday that the company reduced its prices to compete with Uber and Lyft, according to a news release.

Uber and Lyft, the two ride-hailing giants that departed Austin in May 2016 following a referendum vote in favor of stricter city regulations on the ride-hailing industry, returned to the city May 29 after Gov. Greg Abbott signed into law a bill establishing statewide ride-hailing regulations. The statewide law superseded municipal rules, such as Austin's requirement for ride-hailing drivers to undergo fingerprint-based background checks.

RideAustin drivers will continue to be compensated the same despite the fare reduction, according to the release.

"It’s unarguable that extreme price sensitivity in the rideshare market exists, and we had to match the new Austin market rates," said RideAustin CEO and co-founder Andy Tyrba. "Fortunately, due to our driver pay model, we will continue to pay drivers significantly more than Uber and Lyft."

In a blog post last week, Tyrba said the RideAustin had 55 percent fewer rides in the first week of Uber and Lyft's return. Fare, the No. 3 provider in the market, turned off Austin service on June 6, and Fasten lowered its rates within three days of the two ride-hailing companies' return, Tyrba said.

Meanwhile, Fasten will host a festival on Saturday with live music and a presentation of its new rider app.