Uber Comes to Austin Despite Ban

The city of Austin celebrated several months ago when it seemed all but inevitable that the transportation network, Uber, would finally be offering its services.  However, shortly after SXSW, the city regulators banned Uber from picking up patrons.

Unlike a taxi service, Uber is strictly operated through a phone application that allows you to see nearby cars, and pay automatically through the account you have linked to your app. There are even different levels of Uber which allow you to customize your riding experience.

So why would this type of service be banned from the city?

City Code defines rideshare as when a driver is payed no more than the federally established 56 cents per mile. Under the city’s interpretation regulations, Uber’s service would instead be an unlicensed, for-hire driving service.

So, in order to circumvent the cities rules, Uber will not be charging for rides! In fact, if you sign up right now, they are offering a two week deal.

Still, it’s likely drivers will be making more than the 56 cents per mile rate. Uber’s minimum fare in San Antonio is $5.70, according to reports, and the median salary for a full-time Uber driver in San Francisco is $74,191 per year, and in New York the median is $90,766 per year. The company takes a 20 percent cut of fares.

So people of Austin, will you be interested in using Uber? Tell us what you think.