Austin Police to SXSW Attendees: Uber Not Permitted

Despite strict city-wide transportation regulations, Uber, the
high-tech ride sharing service, is doing everything it can to
capitalize on South by Southwest. But Saturday night, local police
warned festival attendees against using it. “Use only permitted
transportation services,” the Austin police department tweeted
Saturday night in a jab at ride-sharing services.

They linked to a
blog with more details:

Unpermitted ground transportation services are possibly
recruiting for drivers in Austin, so the City of Austin wants
people to be aware of the rules and risks before unintentionally
breaking the law and incurring legal costs.

Regulations call for a minimum fare of $55 and rides arranged 30
minutes in advance. The steep price cuts novel ride-sharing
services out of the market. In the blog, the police department
warned that non-compliance could result in a $500 fine for each
violation. Police might even impound violating vehicles.

Despite these challenges, Uber Austin offers a few SXSW services
that comply with the law. Uber pedicabs, or bicycle taxis, are
advertised as a way to soak up the scenery. UberBLACK requires a
minimum fare of $55 in order to accommodate pricey regulations.
Riders get a ride in a stylish black sedan equipped with water
bottles and Blowfish “hangover remedy.”

But when asked in a tweet if Uber rides were permitted, the
police department replied
with a sweeping, “No they are not.”

Uber is using the festival to edge its service into Austin. The
Austin Uber Twitter
account is flush with “you’re welcomes” to happy customers and
apologies for the state-induced supply shortage. Uber started a
campaign with the #AustinNeedsUber hashtag. Customers are using the
hashtag to complain about the shortage of taxis in a packed SXSW
climate.

Ride-sharing services have had a difficult time entering new
cities. Taxicab interests, feeling threatened by the new tech, have
fought against the startup in cities all over the world. French
drivers attacked an
Uber car a couple months ago. New Orleans municipal government

issued a cease-and-desist letter to Uber, though it does
not offer rides there. Chicago,

Milwaukee, and most recently
Seattle, are just a few of the most recent
battlegrounds. 

Read more from Reason.com on Uber.