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Tuesday, January 18, 2022

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Austin's Employment Regulations Drive Out Uber and Lyft

Uber and Lyft recently delivered the city of Austin an ultimatum and the city didn't back down. The Wall Street Journal described how the ride-sharing companies tried to get the city to allow the businesses to craft their ownemployment screening standards. When their efforts failed, Uber and Lyft left Austin and created a hole for other companies to fill.

The ride-sharing innovators offer transportation options that have grown very popular in a variety of areas. Uber and Lyft counted on consumer preference when they challenged Austin employment regulations for drivers - specifically not wanting to force their agents to undergo fingerprint investigations. The companies tried to get Austin citizens to sign a petition against the fingerprint requirements, promising to stop doing business in the area if the effort failed. They did not obtain the correct number of signatures and decided to leave the city.

Fortune suggested this story should show regulators and businesses the importance of compromise. As innovative companies come to market, it's important for regulators to recognize the value businesses hold for consumers and find ways to work together. At the same time, many consumers and regulatory agencies feel companies need to be more adaptable and forthcoming regarding employee screening.

This is what a new ride-sharing business in Austin aims to do, according to USA Today. RideAustin is a nonprofit organization that will share its data with consumers and regulators. The ride service wants to fill the gap left by Uber and Lyft with practices that conform to customer and government demands.

OPENonline is a hiring partner that offers superior customer service and optimum screening practices to adapt to regulations while maintaining internal control. For more information, view our employment solutions or contact us.

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