Lyft drivers are already feeling the burn of the company's decision to defy city rules to launch service in Austin.
According to the Austin Business Journal, on May 31, the city impounded two Lyft drivers' cars and cited them for operating without a valid chauffeur permits. Another driver was cited on May 29, the day the ridesharing company fired up a fleet of pink moustaches in the Texas capital, despite municipal regulations that limit for-hire transportation to licensed companies like taxis and car services.
For Lyft to legally operate in Austin, it would have to charge no more than the federally established carpooling rate of 56 cents per mile, while Lyft's suggested reimbursement rate for its drivers is $1.92 per mile plus other fees. The company has been actively lobbying to get the regulations changed, but launched in the city last week anyway in hopes that demonstrating the value of the service to Austin citizens, who face traffic and public transportation issues, would help its cause.
In an emailed statement to the ABJ about how the company would support the cited drivers, a Lyft spokeswoman said, "We responded immediately to provide support and we are also covering the cost of impound fees and any necessary legal assistance."