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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.

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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.

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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.

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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

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Business News

Are Gen Z more fickle in their shopping, or do brands just need to keep up?

(BUSINESS NEWS) As the world keep changing, brands and businesses have to change along with it. Some say Gen Z is fickle, but others say it is the nature of change.

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Gen Z woman shopping outside on a laptop.

We all know that if you stop adapting to the world around you, you’re going to be left behind. A recently published article decided to point out that the “fickle” Gen Z generation are liable to leave a poor digitally run site and never return. Now of course we’ve got some statistics here… They did do some kind of due diligence.

This generation, whose life has been online from almost day one, puts high stakes on their experiences online. It is how they interact with the world. It’s keyed into their self-worth and their livelihoods, for some. You want to sell online, get your shit together.

They have little to no tolerance for anything untoward. 80% of Gen Zers reported that they are willing to try new brands since the pandemic. Brand loyalty, based on in-person interaction, is almost a thing of the past. When brands are moved from around the world at the touch of your fingertips there’s nothing to stop you. If a company screws up an order, or doesn’t get back to you? Why should you stick with them? When it comes to these issues, 38% of Gen Zers say they only give a brand 1 second chance to fix things. Three-quarters of the surveyed responded saying that they’ll gladly find another retailer if the store is just out of stock.

This study goes even further though and discusses not just those interactions but also the platforms themselves. If a website isn’t easy to navigate, why should I use it? Why should I spend my time when I can flit to another and get exactly what I need instead of getting frustrated? There isn’t a single company in the world that shouldn’t take their webpage development seriously. It’s the new face of their company and brand. How they show that face is what will determine if they are a Rembrandt or a toddlers noodle art.

The new age of online shopping has been blasted into the atmosphere by the pandemic. Online shopping has boosted far and above expected numbers for obvious reasons. When the majority of your populace is told to stay home. What else are they going to do? Brands that have been around for decades have gone out of business because they didn’t change to an online format either. Keep moving forward.

Now as a side note here, as someone who falls only just outside the Gen Z zone the articles description of fickle is pompous. The stories I’ve heard of baby boomers getting waiters fired, or boycotting stores because of a certain shopkeeper are just as fickle and pointed. Nothing has changed in the people, just how they interact with the world. Trying to single out a single generation based on how the world has changed is a shallow view of the world.

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Business News

Chasing Clubhouse success? How the audio chat room trend affects products

(BUSINESS NEWS) It is inevitable that when a new successful trend comes along, other companies will try to make lightning strike twice. Will the audio chat room catch on?

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Smiling woman seated in dark room illuminated by lamp and phone light, participating in audio chat room.

Businesses are always about the hot new thing. People are the always looking for the easiest dollar with the least amount of effort these days. It tends to lead to products that are shoddy and horribly maintained with the least amount of flexibility in pleasing their customers. However, you also have to look at the customer base for this as well. You follow where the money is because that’s where its being spent. It’s like a merry-go-round, constantly chasing the next thing. And the latest of these is the audio chat room.

During the pandemic the entire world saw an eruption of social audio investments. Silicon Valley has gone crazy with this new endeavor. On the 18th of April this year, Clubhouse said it closed on some new funding, which was valued at $4 billion for a live audio app. This thing is still in beta without a single penny of revenue!

The list of other companies who have pursued new audio suites (either through purchase or creation) include:

  • Facebook
  • Spotify
  • Twitter
  • Discord
  • Apple

This whole new audio fad is still in its infancy. These social media and tech giants are all jumping headlong into it with who knows how much forethought. A number of them have their own issues to deal with, but they’ve put things aside to try and grab these audio chat room coattails that are running by. It’s a mix of feelings about the situation honestly. They are trying to survive and keep their customers.

If a competitor creates this new capability and they stay stagnant then they lose customers. If they do this however without dealing with their current issues then they could also lose people. It’s an interesting catch 22 for people out there. Which group do you fall in? Are you antsy for a new toy or are you waiting for one of these lovely sites to fix a problem? It’s another day in capitalism.

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Business News

This web platform for cannabis is blowing up online distribution

(BUSINESS NEWS) Dutchie, a website platform for cannabis companies, just octupled in value. Here’s what that means for the online growth of cannabis distribution.

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A small jar of cannabis on a desk with notebooks, sold online in a nicely made jar.

The cannabis industry has, for the most part, blossomed in the past few years, managing to hit only a few major snags along the way. One of those snags is the issue of payment processing, an issue compounded by predominantly cash-only transactions. Dutchie, a Bend, Oregon company, has helped mitigate that issue—and it just raised a ton of money.

Technically, Dutchie is a jack-of-all-trades service that creates and hosts websites for dispensaries, tracks product, processes orders, keeps stock of revenue, and so much more. While it was valued at around $200 million as recently as summer of 2020, a round of series C funding currently puts the company at around $1.7 billion—approximately 8 times its worth a mere 8 months ago.

There are a few reasons behind Dutchie’s newfound momentum. For starters, the pandemic made cannabis products a lot more accessible—and desirable—in states in which the sale of cannabis is legal. The ensuing surge of customers and demand certainly didn’t hurt the platform, especially given that Dutchie is largely responsible for keeping things on track during some of the more chaotic months for dispensaries.

Several states in which the sale of cannabis was illegal also voted to legalize recreational use, giving Dutchie even more stomping ground than they had prior to the lockdown.

Dutchie also recently took on 2 separate companies and their associated employees, effectively doubling their current staff. The companies are Greenbits—a resource planning group—and Leaflogix, which is a point-of-sale platform. With these two additions to their compendium, Dutchie can operate as even more of an all-in-one suite, which absolutely contributes to its value as a company.

Ross Lipson, who is Dutchie’s co-founder and current CEO, is fairly dismissive of investment opportunities for the public at the moment, saying he instead prefers to stay “focused with what’s on our plate” for the time being. However, he also appears open to the possibility of going public via an acquisition company.

“We look at how this decision brings value to the dispensary and the customer,” says Lipson. “If it brings value, we’d embark on that decision.”

For now, Dutchie remains the ipso facto king of cannabis distribution and sales—and they don’t show any plans to slow down any time soon.

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