Business & Tech

Lyft Prepares To Relaunch In Houston

Move follows passage of state's comprehensive transportation bill on May 29.

HOUSTON, TX — It's back! Beginning at 2 p.m. on Wednesday, you'll be able to hail a Lyft car in Houston, as the ride sharing company re-enters a market it left in 2014 in the wake of the Houston City Council's passage of a series of transportation regulations.

“Today’s [HB 100] bill signing creates a ridesharing network in Texas that benefits consumers, expands transportation options, maximizes access to safe, affordable rides and creates expanded earning opportunities for Texans. Riders and drivers are the real winners today," Chelsea Harrison, a Lyft spokesperson, said in an email on Monday.

The Houston regulations included background checks and fingerprinting of drivers, which Lyft and competitor Uber have long opposed. In 2016, Uber threatened to leave Houston if the rules were not adjusted; the city and Uber agreed to a deal to keep the service operating in the Bayou City.

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HB 100, which was signed by Gov. Greg Abbott on Monday, institutes a statewide framework for the management of transportation companies; its regulations are expected to go into effect in September.

"Texas has longtime been the home for innovation and economic growth, but a patchwork quilt of compliance complexities are forcing businesses out of the Lone Star State," Gov. Abbott said in a statement, as reported by Houston Business Journal. "My goal as Governor is to remove the barriers of government to encourage competition, and empower consumers to choose. This bill increases economic liberty while still ensuring customer safety, and I thank Representative Chris Paddie for his work on this legislation."

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Under HB 100, cities can no longer require fingerprinting in background checks of drivers. It does mandate that drivers to provide electronic receipts to passengers, give "all necessary information to the consumer before each ride." It also institutes a "zero-tolerance intoxication standard for drivers."

On Monday, Houston's mayor, Sylvester Turner, said in a statement that he "can no longer guarantee that your driver has passed a background check that includes all 50 states and the FBI's national criminal database."

In addition to Lyft's decision to ride again in Houston, Uber announced this week that it will be returning to Galveston, a city it left in response to regulations. Both companies will also be returning to Austin.

— Image: Lyft

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