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TechUber Technologies

Uber To Leave Austin Over Fingerprinting, But Will Continue Food Delivery

By
Kia Kokalitcheva
Kia Kokalitcheva
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By
Kia Kokalitcheva
Kia Kokalitcheva
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May 9, 2016, 1:37 PM ET
Photograph courtesy of Uber
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Uber will no longer ferry you around Austin, but it does still want to deliver you tacos.

On Saturday, Uber and fellow ride-hailing company Lyft lost a special election that would have lifted a new city requirement that they fingerprint their drivers. In response to the defeat, the two companies said they would carry through with threats to shut down their operations in Austin.

However, Uber, which also operates a food delivery service, UberEats, will continue to shuttle prepared food from restaurants to customers in the city. Uber sent the following email to its Austin customers:

We’ve seen a growing appetite in Austin for UberEATS since we launched our new app, and we want to thank you for being a customer.

As you’ve heard from the results of Proposition 1, Uber ridesharing is no longer available in Austin. However, we’re glad to tell you that UberEATS will continue service as normal, providing great food when you need it, helping restaurants serve beyond the brick-and-mortar, and offering driver-partners an option to stay on the road.
We look forward to serving you.

Presumably, the company is continuing its food delivery service because the fingerprinting regulations it opposed only apply to its ride-hailing service for ferrying people around. In December, Austin’s city council passed a new regulations that included a provision that forces drivers for ride-hailing companies to get fingerprinted as part of their background check.

Uber and Lyft vehemently fought against the requirement, arguing that it places unnecessary burdens on the companies and their drivers and that their current background checks are more than adequate.

UberEats is facing stiff competition from local food delivery service Favor, which has been operating in the city since 2013.

Fortune has contacted Uber for comment and will update this story if we hear more.

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