Lyft pulling up stakes unless paid ride rules change

Younus Hyder, a Lyft driver, prepares the company's iconinc pink moustache for the front of his vehicle outside Houston City Hall on Aug. 5. Younus Hyder, a Lyft driver, prepares the company's iconinc pink moustache for the front of his vehicle outside Houston City Hall on Aug. 5. Photo: Mayra Beltran, Staff Photo: Mayra Beltran, Staff Image 1 of / 30 Caption Close Lyft pulling up stakes unless paid ride rules change 1 / 30 Back to Gallery

Less than a week before new regulations regarding paid rides in Houston take effect, one of two companies that launched in the city is preparing to stop providing rides rather than use a city-required procedure to conduct background checks.

“We’ve made the very difficult decision that if Houston doesn’t amend its process, we’ve decided we have no choice but to pause operations,” said David Estrada, vice-president of government operations for Lyft.

The California company and its competitor Uber charged into Houston in February, hoping to persuade Houston officials to modify paid ride rules to accommodate them. The City Council revised the rules in August, setting up a process by which the companies could continue to operate.

Lyft and Uber connect riders with drivers using their personal vehicles via smartphone app.

The rules set to go into effect Tuesday include requirements that drivers present their vehicle for inspection, submit a warrant check and personal information to the city and undergo drug screening.

Many of the rules duplicate what the companies already do, but the procedures are not exactly the same. While the companies use online background checks, Houston requires applicants to use the state’s fingerprint-based background check company.

"We have found a more efficient way to do these things,” said David Mack, Lyft’s director of public affairs. “We’re not suggesting the barriers to enter the market should be lower, we’re saying it adds a lot of friction for the drivers to not make the system the best way moving forward.”

Estrada said the company will ask the city to delay implementing the rules. If it does not do so, he said, Lyft will cease operations in Houston until the process can be streamlined.

City officials could not immediately be reached for comment.

“Houston is one market, but our goal is ride-sharing across America,” Estrada said. “We want to be in every market, but we have come to the decision we want to take a stand.”