Connect with us

Business News

Austin, your rideshare options are about to get shaken up, again

(BUSINESS NEWS) House Bill 100 is one its way to Gov. Abbot’s desk. If signed through, big name rideshare companies will likely come back to the capitol.

Published

on

uber austin ridesharing

Goodnews and bad news

Good news for Austinites who miss Uber and Lyft. Or put another way, a very bad news for those who do not, and have rather grown fond of local ridesharing startups.

bar
Thanks to House Bill 100, a Texas Senate approved legislation creating statewide ridesharing rules—thereby overriding local ordinances—the ridesharing giants are braced to come back to Austin in the near future.

One signature away

The bill is now awaiting at the desk of Gov. Greg Abbot, whose signature would immediately make it into law.

Uber and Lyft for their part, is keen to come back.

A spokesperson for Uber tells news channel KXAN that they will resume operations in Austin immediately after Gov. Greg Abbott signs the bill into law.

Where’d they go?

A year ago, Uber and Lyft pulled out just two days after refusing to comply with voters’ wishes of abiding by strict regulations. They both decided not to comply with the rejection of Prop 1—which would have replaced the City Council’s strict rules with loose oversight, like making fingerprinting a non-requirement.

At that time, the ridesharing companies warned residents during the lead up to the voting, that banning the company would mean increases in instances of drunk driving related deaths, crimes, and a massive loss of local part time and full time jobs.

They spent $8 million on a campaign, and provided free rides on the day of the voting.

Austin residents still rejected their Prop 1. Thankfully, the grim picture painted by Uber and Lyft in case of their departure did not come to pass.

On the contrary

Instead, DWI arrests hit a five-year low in the six months following the vote. And those who lost their jobs signed up at least half a dozen other startups that filled the space, including Fasten, Fare and RideAustin, a local nonprofit operation.

But the new bill, approved on Wednesday, will override regulations imposed by 20 municipalities across the state, including Austin, and put the operational legal framework of ride hailing companies under the Texas Department of Licensing and Regulation.

What about the lil’ guys?

Now that the comeback of the ride hailing titans are all but a matter of time, the future of young startups suddenly become uncertain.

CEO of RideAustin, Andy Tryba said in comments on Wednesday that if the company gives fewer than 20,000 rides a week, on average, it will very likely have to shut down.

Currently the company provides between 50,000 and 70,000 rides a week, but their share would fall significantly, if Uber and Lyft came back.

Mr. Tryba added that since RideAustin adheres to current city ordinances for ride-hailing apps, it is going to continue to do so, despite of what competitors do, including the requirement that drivers submit to fingerprint background checks, “because we feel it’s important to continue to honor the wishes of Austin’s voters.”

Austin’s ordinance

That Austin requires more stringent rules than Uber and Lyft cared for remains a contentious issue. Mayor Steve Adler said on Wednesday, “Our city should be proud of how we filled the gap created when Uber and Lyft left, and we now must hope that they return ready to compete in a way that reflects Austin’s values.”

However, it is almost certain that Uber and Lyft shall not abide by the city ordinance, as they were always opposed to it. Moreover, the House Bill 100 shall render the Austin law inoperative, thereby making strict background checks unnecessary.

Kirill Evdakov, CEO and co-founder of Fasten, which opposed the Bill, said lawmakers voted against public safety and the rights of cities.

Evdakov urged the city residents to ignore Uber and Lyft when they come back. “Austinites may not be able to overturn HB 100 legislatively, but they can make it irrelevant economically,” he said in a prepared statement.

Gov. Greg Abbott is expected to the sign the bill, as evident from his Wednesday tweet that read “Buckle Up. Coming Soon.”

In response to HB100 passing onto the governor, Chelsea Harrison, a spokesperson for Lyft said, “Ridesharing in Texas took a tremendous step forward today. Thank you to Senator Schwertner and Representative Paddie for defending consumer choice and all the stakeholders who have helped create safer roads and expand reliable, affordable rides for Texans. On behalf of the entire ridesharing community, thank you to all of the legislative champions who have helped guide this bill through the capitol.”

Here we are

It seems that big tech giants got their way this time around.

They lobbied the Senate and the House when they failed to lobby enough votes from the citizens.

The Mayor made a point to raise this glaring fact: “I’m disappointed that the legislature chose to nullify the bedrock principles of self-governance and limited government by imposing regulations on our city over the objection of Austin voters.”

#Austin

Barnil is a Staff Writer at The American Genius. With a Master’s Degree in International Relations, Barnil is a Research Assistant at UT, Austin. When he hikes, he falls. When he swims, he sinks. When he drives, others honk. But when he writes, people read.

Continue Reading
Advertisement
2 Comments

2 Comments

  1. ATX resident

    May 19, 2017 at 9:57 am

    “shaken up”? I think you mean get better immediately. The mayor kicked out Uber to line his own pockets with cab company kickbacks and squash consumer choice. He deserves to go to jail, but I’ll settle for him crying himself to sleep over this.

  2. Pingback: Uber shifts ride fares in an incredibly odd way - The American Genius

Leave a Reply

Your email address will not be published. Required fields are marked *

Business News

Working through job interview adrenaline and anxiety

(CAREER NEWS) Find out how to use the pressure and adrenaline of a face-to-face job interview to your advantage.

Published

on

introverts job interview

It’s undeniable that there is a certain amount of adrenaline that flows through you during a face-to-face job interview. You’re theoretically vying for a job you really want (or need), so you have to make sure that you put in your best effort.

Even under the best of circumstances, this can make you feel like you’re in an interrogation room being asked what you were doing the night of December 2nd, 1997. This is where that adrenaline can come into play, which can make things harder – just make sure you’re properly utilizing it.

First off, use that adrenaline to get you to the interview location with plenty of time to spare. No employer values tardiness, and it’s good to walk into a high-pressure situation with all of your ducks in a row.

Being early also gives you a chance to get a feel for the environment and gives you a chance to make an impression with the receptionist. Speaking as a former receptionist, this is not something you should overlook as our opinions are often asked by the employer.

Once you’re in the interview setting, use the adrenaline to keep you engaged in the conversation. An important aspect of this is making eye contact.

Don’t confuse this with being creepy and staring without blinking. Just be sure to look into the eye of the person you’re speaking to, and be sure to share that eye contact with others if you’re speaking to a panel of interviewers, keeping a happy, interested (but not scared or overly enthusiastic) look on your face.

With rushing adrenaline, you may use self-soothing movements like playing with your hair or wringing your hands. You may exhibit anxious movements like toe tapping. Don’t do any of these things – they’re within your control. But if something like a shaky voice from these nerves are not within your control, apologize up front (“Apologies for my shaky voice, I have normal interview jitters, I usually speak like a normal human person”) and move on.

Depending on how the interviewer leads the conversation, the entire interview doesn’t have to be this stiff discussion. If given the opportunity, use this time to work in some small talk so they can see the personable side of your personality. For example, you can keep it related to the situation by making small talk about the traffic and asking how the interviewer typically gets to work each day (buying time is another great way to work through the anxiety of rushing adrenaline).

Throughout the course of the conversation, whether the small talk or the interview itself, make sure you’re showing your true colors and not lying. It isn’t hard (especially these days) to be caught in a lie, so don’t waste anyone’s time with the nonsense.

Once everything is said and done, say your thank yous and your goodbyes and make your way to the exit. Don’t try and overstay your welcome or linger in the lobby, just be on your way. But, don’t forget to send a courteous “thank you” email.

Above all, remember that everyone is nervous in a job interview situation – you’re not alone!

Continue Reading

Business News

If Amazon puts HQ in Chicago, they’ll get a cut of their workers’ income taxes

(BUSINESS NEWS) Amazon continues the hunt for a new city to set up shop, and cities across the nation are offering plenty to attract the brand.

Published

on

cash amazon label

If Amazon sets up a new headquarters in Chicago, the company could get over two billion dollars in tax breaks, including $1.32 billion from their workers’ income taxes. How would they achieve this fiendish feat?

With the magic of personal income tax diversion, where employers withhold state income taxes from employee paychecks. Workers still pay full income taxes, but the company holds onto all or part of the funds.

This happens when a city says to a business, “please come live here, we want your money so much you can just not pay taxes okay?” In this case, both Chicago and the state authorities of Illinois presented this offering to Amazon.

In September, Amazon announced plans for a second headquarters, which was very originally dubbed Amazon HQ2. The new headquarters is intended to supplement the existing one in Seattle. Amazon intends to spend around five billion on new construction alone, and said it plans on having 50,000 workers at HQ2.

Amazon outlined core requirements for HQ2, including access to mass transit, metropolitan population of over one million, and up to eight million square feet of office space just in case they need to expand even more. Proximity to major universities and airports with direct flights to New York, San Francisco, Seattle, and Washington D.C. were part of the optional rider.

At least 238 other bids have been made for the headquarters. Chris Christie proposed paying Amazon up to $10,000 for every job created even though New Jersey has $60 billion in unfunded pension obligations.

Plenty of other cities want to take Amazon to prom too, and have launched promotional campaigns to stand out from the crowd. One Arizona economic development firm sent a 21-foot cactus, which was rejected due to Amazon’s corporate gift policy. Don’t worry about the cactus’ feelings though, it was donated to the Arizona-Sonora Desert Museum.

In another proposal, Kansas City, Missouri mayor Sly James purchased one thousand Amazon products, donated them to charity, then wrote five star reviews for every item, which all included shout outs to Kansas City’s positive attributes. James either has way too much time on his hands, or employs very productive interns.

This lovely display of cities offering incredible legal loopholes for Amazon is pretty heartwarming. After all, the company is definitely in need of financial help and government perks. Except that oh wait, founder Jeff Bezos is currently the only person in the world worth over $100 billion dollars.

Amazon’s soaring share price added around $43 billion to founder Jeff Bezos’ personal fortune this year, and Black Friday alone raked in $2.4 billion. There’s also all that fun stuff about subpar
workers’ conditions in Amazon’s warehouses that we all pretend to forget when there’s free two-day shipping on that thing you really, really want.

So far, Amazon has yet to accept Chicago’s tax-tastic bid, or any other offer. Based on the list of requirements, Moody’s Analytics released a data-specific analysis of the top cities.

Austin, Texas topped the list, followed by Atlanta, Philadelphia, and Rochester, New York. Other contenders include Pittsburgh, Portland, and New York City.

Amazon will announce the final site selection and plan sometime in 2018.

Continue Reading

Business News

The worst of the retail apocalypse is on the way

(BUSINESS NEWS) We’ve long lamented the decline of big box retail, but one report says the “Retail Apocalypse” is just beginning and it’s about to get much worse.

Published

on

store closings retail apocalypse

You have likely already noticed the impacts of what has been darkly dubbed America’s “Retail Apocalypse”: Half-empty strip malls, brightly-colored signs announcing closing sales, or maybe your once-favorite department store has declared bankruptcy.

Whatever you’ve seen, it’s only going to get worse, according to a comprehensive report from Bloomberg, implying certainty in the fall of the retail industry as more than just sensational news headlines.

U.S. retailers announced more than 3,000 store openings in the first three quarters of this year, but that’s coupled with 6,800 chain store closures. All while consumer confidence levels are high and unemployment is low, and the economy keeps growing – a mix you’d think would be conducive to retail growth and strength.

However, more and more retail chains are filing for bankruptcy and financially distressed. This has caused an increase in the number of delinquent loan payments from malls and shopping centers containing said retailers.

So what’s the deal?

No, it’s not because Amazon.com is taking over the world (yet) or because millennials would rather travel than buy more “stuff.”

The primary cause for the retail apocalypse is not buying habits, it is that many failing retail chains are overloaded with debt.

There are billions of dollars tied up in the borrowings of troubled stores, and that strain is going to become even harder for the market to handle.

The impact of retail’s crash and burn will be felt across the country and economy. Low-income workers will be displaced, local tax bases will shrink, and investor losses on stocks, bonds, and real estate will grow.

In a nutshell: It’s only going to get worse.

Until recently, retailers avoided bankruptcy by refinancing their debts. However, as the market has evolved, lenders have become less forgiving, according to the Bloomberg report.

Additionally, an overwhelming amount of risky retail debt is coming due within in the next five years. For example, teen costume jewelry chain Claire’s Stores, Inc. has $2 billion in borrowings that will start maturing in 2019 – and it still has 1,600 stores open in North America.

In fact, $100 million of high-yield retail borrowings are set to mature this year alone and that will jump to $1.9 billion in 2018, according to Fitch Ratings Inc. data cited by Bloomberg. Between 2019 and 2025, that figure will expand to an annual average of almost $5 billion.

And, while the demand for refinancing increases, credit markets are tightening. Thus far, retailers have delayed their doom thanks to the money the Federal Reserve has pushed back into the economy since the Great Recession. Low interest rates made the risker retail debt (and the higher return it brings) more appealing. But now as the Feds raise their benchmark interest rates, that demand will decrease.

Then there’s the matter of store credit cards. The largest private-label card issuer, Synchrony Financial, has already increased reserves in order to help cover loan losses this year. Citigroup, Inc. has reported declining rates on retail portfolios, too. Why? Because shoppers are more likely to stop paying back their retail card debt if the store they went to has closed.

As all this compounds, it could directly impact the industry that employs the largest number of Americans who are at the low end of the income scale. According to Bloomberg’s research, salespeople and cashiers in this industry totaled a whopping eight million. Since our last financial crisis, employment rates have been steadily increasing, even in the retail industry. Until this year, that is. Retail store jobs have decreased by 101,000 this year so far, no thanks to store closures.

Many of the largest U.S. retailers (think Target and Walmart) have decided to reduce their brick-and-mortar space. Sure, the e-commerce boom has taken a toll, but the U.S. has been considered “over-stored” ever since investors poured money into commercial real estate as the suburbs boomed decades ago, which began an era of big box stores.

It’s time for that boom to bust.

At the end of Q3, 6,752 U.S. retail locations were scheduled to close, excluding grocery stores and restaurants, according to the International Council of Shopping Centers. That’s more than double the 2016 total and inching close to the all-time annual high of 6,900 recorded in 2008, the midst of the recession.

Clothing stores have taken the hardest hit, as 2,500 locations are closing. Department stores aren’t faring well, either. Macy’s, Sears and J.C. Penney are all downsizing.

Overall, about 550 department stores plan to close their doors.

This really does sound apocalyptic, doesn’t it?

The consumer impacts of what’s to come will be widespread. Ohio, West Virginia, Michigan and Illinois have been some of the hardest hit so far, but other states will feel the burn, too. Florida, for example, relies on retail salespeople more than any other state, according to Bureau of Labor Statistics cited by Bloomberg.

Insert a grimacing emoji face here.

I think Charlie O’Shea, a Moody’s retail analyst for Moody’s, summed up the retail industry’s prospects impeccably at the end of Bloomberg’s report: “A day of reckoning is coming,” he said.

Continue Reading
Advertisement

The
American Genius
News neatly in your inbox

Join thousands of AG fans and SUBSCRIBE to get business and tech news updates, breaking stories, and MORE!

Emerging Stories