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

Skilled workers can live in any city they wish and still get work [study]

(BUSINESS NEWS) A 2018 study reveals that remote work is on the rise, and the ultra skilled workers can work from any city they wish.

Published

on

skilled workers

A 2018 study that surveyed 1,005 hiring decision makers commissioned by Upwork sheds some interesting insights on the attitudes around remote workers and the challenges hiring managers are experiencing finding talent. The remote workforce is the future after all and this study offers both insight into challenges and solutions.

It was noted that talent is becoming harder and harder to find (up to three times more difficult than in past years). Meanwhile, remote work is on the rise, according to 55 percent of managers.

The overarching attitude toward offices becoming temporary anchor points is increasing, indicating that commutes are becoming less common (albeit slightly). Companies are increasingly embracing remote work, and according to 38 percent of those surveyed, it will become the predominant workforce.

A major challenge remains that company policies aren’t caught up to remote work – they are lagging behind or non-existent according to 57 percent of organizations.

Over half of all companies surveyed are using more temporary, contract, or freelance workers and the majority of hiring managers believe agile teams will become the norm in the near future.

Perhaps the juiciest tidbit, the fact that skills are viewed as more important than location suggests that at the end of the day…

remote workforce

If you have the skills, you can live basically anywhere. Remote and freelance work offers a variety of opportunities and means you don’t have to be synchronously local to a team to get work done. This means that you don’t need to be in a big city like New York or Los Angeles to get the big work and have access to opportunity.

Companies are struggling to find talent, and despite a lack of policy support, are opening up to remote work. Adding to this challenge is that more and more Americans are less mobile, due to concerns about cost of living (or other things in our lives), hiring managers are having a harder time finding the right talent to fill their own vacancy.

Skilled workers (those who have the abilities that are in demand and desired by their industry) have the ability to pick and choose where they want to live and it looks like now and the future, companies are coming to meet them. This is good news, and offers more and more opportunities, as well as flexibility for hiring managers.

Continue Reading

Business News

Indeed and Glassdoor are now owned by one Japanese company – what’s next?

(TECHNOLOGY) Now that Glassdoor and Indeed are owned by an international brand, how will their main competitors (and search engines) react?

Published

on

glassdoor indeed

This year, Glassdoor, one of the most popular job and recruiting sites, has been acquired by Recruit Holdings Co. Ltd. (RCRRF), a Tokyo-based firm in a $1.2 billion cash transaction to become part of Recruit’s growing Human Resources Technology segment.

Recruit Holdings operates Three areas of business: HR Technology, Media & Solutions, and Staffing. In 2012, they acquired CT-based Indeed, which continues to be the number one job site in the world. Glassdoor will continue to operate independently as a part of Recruit Holdings, which holds companies in North America, Europe, and Asia, but it is noteworthy that a Japanese company owns two of the biggest players in the job search game.

The possibilities from this merger are not yet clear, but given that Recruit holds both Indeed and Glassdoor, the opportunity for integration and grouped pricing could eventually be useful for recruiters and HR/Hiring professionals. Although the company has not formally announced that integration is a possibility, considering the stiff competition from LinkedIn Jobs – it would be a great way to gain some competitive advantage.

The acquisition could help Recruit take on Microsoft (who owns LinkedIn) and Google to keep the two from dominating the online job boards, to which are essential for job seekers and talent seekers.

Of course, nothing is set in stone, but the possibilities are there. Recruiters should consider the possibilities for pricing and plan for how they will use the platforms (and how they will integrate Google for Jobs) to best collect the candidates they need.

Job seekers be prepared for more logins and more search sites for jobs and recognize that the possibility of Google no longer indexing Glassdoor (just as Indeed is not indexing on Google jobs).

The conflict between Indeed/Glassdoor, Microsoft, Google, and maybe even Facebook (look at Facebook.com/Jobs) is going to be an interesting battle to watch. JobBoardDoctor described the conflict of Indeed vs. Google as an old-west shoot out at high noon.

I suspect that with all four players in – it’s going to be a cold war in the recruiting world. Sit tight folks. Let’s see whats next!

Continue Reading

Business News

This fake company weeds out crappy clients

(BUSINESS) The former CEO of Highrise used a fake website to weed out toxic clients. How can you keep problematic customers out of your business?

Published

on

weeding out toxic clients

Sorting through your client list to weed out potentially toxic customers isn’t a process which garners the same attention as a company removing problematic employees, but it’s every bit as important — and, in many cases, twice as tricky to accomplish. One innovative journalist’s solution to this problem was to set up a fake website to act as a buffer between unwanted clients and his inbox.

If you’re anything like Nathan Kontny, your inbox is probably brimming with unread emails, product pitches, and pleas from people with whom you’ve never met in person or collaborated; unfortunately, many of these “people” are simply automated bots geared toward generating more press for their services.

Nathan’s response to this phenomenon was to create a website called “Trick a Journalist” in order to see which potential clients would sign up for the service.

Hilariously enough, the trap worked exactly as planned. Anyone signing up for Trick a Journalist was blacklisted and prevented from signing up for Nathan’s CRM software, with Nathan’s justification being that the CRM software in question should never be used for something so egregiously predatory as Trick a Journalist.

By creating a product which sets apart unwanted clients from the rest of the pack, Nathan succeeded in both attracting and quarantining present and future threats to the integrity of his business.

While this model may not be practicable at face value, there’s an important lesson here: determining the lengths to which your clients will go to gain the upper hand BEFORE working for them is an important task, as your clients’ actions will reflect upon your product or services either way.

Ruthlessness in business isn’t unheard of, but you should be aware of your customers’ tendencies well in advance of signing off on their behavior.

Of course, one minor issue with Nathan’s model of operation is that, invariably, someone will connect Trick a Journalist to his brand and miss the joke entirely.

There are less risky routes to weeding out potentially problematic clients than blacklisting them via a satirical website — though one might argue such routes are less fun — but the end result is essentially the same: keeping unsavory clients out of your inbox and off of your product list.

Continue Reading
Advertisement

Our Great Parnters

The
American Genius
news neatly in your inbox

Subscribe to our mailing list and get interesting stuff and updates to your email inbox.

Emerging Stories