‘Underground’ TNCs Operate Outside City Laws and Company Rules

‘Underground’ TNCs Operate Outside City Laws and Company Rules

Following Uber and Lyft leaving Austin, Texas, drivers and riders have taken to alternative methods to create ride-hailing services. Extents of this effort range from Facebook groups to a newly developed app, Arcade City. As of 2016, Arcade City was not registered with the city, and it lets drivers and riders determine their own level of comfortability with riding conditions.

Key findings

"When Proposition 1 failed in May, some 10,000 drivers were out of work. Some of those drivers are now operating illegally and organized through platforms that don’t require background checks, fingerprint or otherwise, why Uber and Lyft say they left."

"The city tells us they know about these TNCs that aren’t registered with the city. They say they have specific officers enforcing the city code and say they’re encouraging all riders to only use companies where drivers are vetted."

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