Roughly 10,000 ride-hailing drivers for both Uber and Lyft were not working beginning Monday after the two companies lost a vote over mandatory fingerprint background checks for drivers.
Voters in Austin, Texas, over the weekend rejected a measure, Proposition 1, that would have exempted drivers from required fingerprinting as part of their background checks.
Uber shut down in Austin at 8 a.m. Central time. "Disappointment does not begin to describe how we feel about shutting down operations in Austin," said Chris Nakutis, general manager of Uber Austin, in prepared remarks.
Rival company Lyft in a statement said it paused operations Monday. "Unfortunately, the rules passed by city council don't allow true ride sharing to operate. Instead, they make it harder for part-time drivers, the heart of Lyft's peer-to-peer model, to get on the road and harder for passengers to get a ride," according to a Lyft statement.
About 10,000 ride-hailing drivers for both companies are being impacted, said Taylor Patterson, an Uber spokeswoman.