Lyft leaves Houston / Uber stays for now

The Revolutionary Che'ring economy.

The Revolutionary Che’ring economy.

It’s been a while since I looked at taxi revolution / war of backseat independence but in Houston, there have been some changes recently.

The first being that Houston council announced rules about regulating drivers that involve potential drivers presenting their vehicle for inspection and submitting a warrant check and personal information to the city and undergo drug screening. [Houston chronicle 10/29/14]

Both Lyft and Uber say they already take many of these steps, but their procedures differ. Although they use online background checks, City of Houston will require applicants to use the Texas’ fingerprint-based background check company. Lyft have balked at this and claimed “We have found a more efficient way to do these things” according to said David Mack, Lyft’s director of public affairs. Lyft further add that the procedures are onerous especially for people who wish to do this as a hobby job and the drug tests and permits would be expensive. The cost for this would be $62.

The kicker is that Lyft have threatened to exit from the Houston market unless the rules get relaxed or as they describe it, “pause operations”.

The second is that Houston is going to allow ride sharing at the airports where they will be allowed to get an airport permit. [Houston chronicle 11/12/14].  I am not sure how that will work in practice especially if Uber (sole survivor) then charged surge pricing.

So, is this the next stage ie/a counter revolution where other cities follow Houston’s lead and define higher driver and automobile standards if they wish to do business in that city? If so, it will not be the ‘laissez-faire’ environment that Lyft and Uber want.

Ah, C’est la guerre. (Look at moi: I’m showing off my french tonight ! )

Trajan