Uber and Lyft entered the Austin market after almost a year since they left due to an ordinance passed by the local magistrate of fingerprint checks to be done by all the drivers that are working for the ride-hailing companies. Since then RideAustin enjoyed a monopoly in the market and managed to cater to more than 20,000 customers every week. Whoever, there were some other local players like FARE and Fasten which would provide similar services to the customers but RideAustin topped the chart. But recently, a new law was passed according to which the rules and regulation decision related to the ride-hailing services were passed to the state and the ordinance passed last year related to the fingerprint check was scratched.
This gave an advantage to the giant players like Lyft and Uber to exploit the market and regain their lost business in this area. They have started their operational activities since a week but local players like RideAustin is still feeling the damage that would happen to their revenue due to increase in competition from these big giants. RideAustin has already seen a drop in their revenues and customer request by almost 55 percent in last one week and is afraid of losing the business majorly in coming future. RideAustin considers itself to be very different from the giant players like Uber and Lyft because they focus more on charity and providing benefits to their drivers rather than themselves.
According to RideAustin, they allow the driver to keep all the money and don’t charge them any commission for using their device and they focus majorly on donating a major share of their revenue to local charities. But since the entry of Uber and Lyft, they have seen a sudden drop in the number of commuters using their services and that is scaring them to maintain their existence in the local market. Prior to the entry of these ride-hailing giant companies in the market, they managed to provide services to more than 58,000 customers. But within one week, the number dropped down to 25,000 customers. This is considered to be a beginning since both these ride-hailing giants have deep pockets and huge investment backups to attract the attention of the customer and divert them towards their services. But RideAustin is expected to stick to their basics and continue with the regular procedure of checking the fingerprints before they hire any new drivers to their list. They expect to maintain the minimum number of rides required by them to keep the business moving so that they can exist in the market.