(credit: SPUR)
Uber and Lyft said Monday they are suspending their ride-hailing services in Austin—the home of the South by Southwest festival—in the wake of a driver-fingerprinting fracas.
The companies had said they would bail on the tech hub if voters rejected Proposition 1 to repeal regulations in a dispute that is likely to play itself out in other areas. It's a legal fight that is a victory for taxi cab companies, which have been hit hard by ride-hailing companies.
Nearly 56 percent of voters rejected Proposition 1 on Saturday. The companies spent a combined $8 million in a failed bid to get it passed. The measure would have repealed earlier regulations for transportation network company drivers to pass a driver-history background check and a fingerprint background check. The fingerprints eventually make their way to the FBI. The companies said the regulations were making it too difficult to follow their business models.
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