Proposition 1 Fails In Austin; City Retains Supervision Over Ride-Sharing Drivers' Background Checks [UPDATED]

AUSTIN, TX -- Proposition 1 -- a referendum that pitted the city against ride-sharing companies centered on security background checks for drivers -- was rejected in Saturday's elections.

In the final tally, 55.8 percent of registered voters cast ballots against Prop. 1, with 44.2 percent voting for it.

A vote against Prop. 1 means the majority of voters agreed with the city's assertion that ride-sharing companies must adhere to existing ordinances related to security background checks of all drivers -- including fingerprint checks to which officials of ride-sharing firms Uber and Lyft were vehemently opposed.

Existing city ordinances related to checking drivers' backgrounds -- including the city's pedicab drivers -- requires them to undergo fingerprint checks. But officials at Uber and Lyft were opposed to the measure, citing the cost and time associated with the process cited among the reasons for their opposition.

In the weeks ahead of the election, both companies launched a full court press in trying to convince voters to support Prop. 1. Canvassers knocked on doors; literature was mailed (sometimes numerous times to the same address); phone banks were set up; tables at area bars were installed with clipboards soliciting further support.

The tactics were aggressive and well-orchestrated in coaxing support from voters. But just ahead of the election, ride-sharing officials pulled out all the stops, vowing to cease operations entirely if Proposition 1 were to fail. Both said they would be gone by Monday morning should their side lose at the polls.

After votes were tallied on Saturday night, officials at both of the city's major ride-sharing firms reiterated that threat.

Uber officials issued a statement expressing their disappointment over the results of the election.

"Disappointment does not begin to describe how we feel about shutting down operations in Austin," the statement began. "For the past two years, drivers and riders made ride-sharing work in this great city. We're incredibly grateful.

"From rallies to phone banking to knocking on doors, they spread the word and their support was was humbling and inspiring."

Even after voters had spoken, they held out hope city officials might reconsider exempting them from their existing ordinance overseeing security checks for drivers: "We hope the city council will reconsider their ordinance so we can work together to make the streets of Austin a safer place for everyone."

Lyft officials issued a similar statement.

While the city's dynamics perfectly suit their business model, the failure of Prop. 1 makes it untenable for Lyft to continue operating in Austin, officials said.

"Lyft and Austin are a perfect match, and we want to stay in the city," the statement began. "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."

As a result, Lyft said they would "pause" their operations in Austin effective Monday morning as they had threatened to do shortly before voters cast their votes.

"Because of this, we have to take a stand for a long-term path forward that lets ride-sharing continue to grow across the country. and will pause operations in Austin on Monday, May 9th."

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From earlier:

AUSTIN, TX -- Early voting results in Travis County indicate 56 percent of those casting ballots in Proposition 1 have voted against the proposition, according to media reports.

Polls closed at 7 p.m. KVUE-TV reports more than half of registered voters casting ballots on the measure have voted against it. KXAN-TV reports the same early results, with 43.97 percent voting for Prop. 1 and 56.03 percent voting against it.

A vote against Prop. 1 would give the city total oversight into background checks for drivers of ride-sharing companies Uber and Lyft. A vote means ride-sharing companies Uber and Lyft would be left to draft their own background checks independent of city oversight.

Officials at both companies have balked at the city's requirement of fingerprint checks for drivers, threatening they will leave Austin if forced to comply to such checks.

Existing city statutes require fingerprints of all drivers of member of the public -- including pedicab drivers -- to undergo fingerprint checks as part of the security measures in vetting their records. There have been reports of sexual assaults by drivers of ride-sharing companies, prompting the requirement of fingerprint background checks as an added security safeguard.

But officials at Uber and Lyft have long resisted the requirement, forcing an election to let the voters decide the matter. Ahead of today's election, officials at both companies said they would leave the market as of Monday morning if the electorate were to vote against Proposition 1, according to various media reports, including the Austin American-Statesman.