A startup non-profit car-hailing company called RideAustin sees and creates an opportunity where big names saw only bureaucracy and obstacles.
RideAustin is one of the services that will replace Uber and Lyft, which ceased their activity in Austin, Texas since May 9.
The two companies negotiated with the local authorities to get a free pass from Proposition 1, a proposal that mandates drivers to provide fingerprint scans as part of their background checks. After 56 percent of citizens voted for mandatory fingerprinting of car-sharing drivers, Uber and Lyft stopped providing services in the city.
RideAustin, however, finds the idea palatable.
What is more, the not-for-profit status of the organization means that overhead and general costs should be lower than in the case of profit-driven enterprises. This does not mean that the board of RideAustin can get away with lousy budgeting, but it implies that the pressure for increasing fares will be lower.
The organization encourages passengers to round up the cost of the ride, promising that the difference will go to a local charity. Take note that the app does not allow riders to tip.
Whereas some companies have a standard and premium membership, RideAustin promises that paying more will be optional. This means that those who are willing to shell out for premium fares will get priority when hailing a RideAustin car. The rest will remain in queue, until an available driver picks them up.
"If you are an ex-Uber/Lyft driver and want to drive for us - download the app and complete the registration process. We will reach out to you and help you through the city's fingerprinting process - and pay for the fingerprinting service," RideAustin reads on its website.
The startup gained lift after Uber and Lyft suspended their activity in Austin, but it is not the only car-hailing service that sprouted from the ashes of the two main players.
Ventures such as Get Me or Wingz appeared shortly after the city voted in favor of mandatory fingerprinting drivers.
One of Get Me's drivers claims that during his first day he rounded up about $600.
Wingz is another car-hailing service in Austin, but it targets a specific niche of people: airport travelers. Those who want a ride to the local airport must book their fare two hours in advance. Due to the increasing demand, there are rumors that Wingz is considering to expand services to the full town.
Fasten is a Boston-based operation that intends to come to Austin to fill in the space left behind by Uber and Lyft.
All the aforementioned companies will go through with the regulations and procedures demanded by the city hall, a process that Lyft and Uber refused to lay on their drivers. Both companies stated numerous times that they engage in thorough background checks, and those security measures are enough.
However, Austin is one of the places where the municipal regulations ask for a strict checkup for drivers who are providing transportation services. In April, San Francisco started to ask Lyft and Uber drivers to get a business license if they desire to keep running transport operations.
It remains to be seen whether or not Austin will benefit from the background security checks, but one thing is clear: with the two important players gone, an opportunity window opens up for smaller ride-sharing enterprises.
