Uber and Lyft have shut up shop in Austin, Texas, in protest over strict new regulations.
New rules imposed by the usually tech-friendly city introduced a host of extra requirements for drivers.
The ride-sharing companies have both suspended services in Austin from today after failing to convince voters they should be allowed to regulate themselves.
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Extra requirements include marking cars clearly with the ride company’s name, and agreeing to stop pick-ups and drop-offs in certain parts of the city.
But the major sticking point was a requirement that all drivers undergo fingerprint-based background checks before being allowed to work.
Both Uber and Lyft say the burden is too much, and that their in-house checks are already sufficient.
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According to USA Today, the companies – usually rivals – spent more than $8 million campaigning against the regulations.
The new rules come into force today, and both Uber and Lyft say the burden is too much to deal with.
Voters in Austin had the chance to repeal the regulations before they came into force – but a vote on so-called Proposition 1, was rejected 56-44.
Both companies say they want to come back to Austin, but won’t while the new rules are still in place.