Although the city has commissioned a task force to explore how — or even if — rideshare services may be allowed to operate in San Antonio, Police Chief William McManus has stated that for the time being he will continue to enforce the vehicle-for-hire ordinance that prohibits these companies from operating — though this hasn’t stopped rideshare giant Uber and its smaller-but-growing competitor Lyft from finding ways around the ban.
Notorious for openly defying authorities where ridesharing has come under attack, Uber recently tried an end run around the law by teaming up with Crown Royal to offer free rides celebrating the Spurs’ win over the Heat in the NBA Finals. To receive the free ride, San Antonio residents who are 21 and up simply had to download the free app and enter the code “ReignOn.”
For rideshare advocates, the app simply facilitates individuals performing a service for other individuals and doesn’t fall under the regulatory purview of municipal and state transportation laws. Critics, who include municipal and state regulatory authorities, insurers, and taxi cab companies and operators, assert that rideshare companies like Uber and Lyft are illegal cab companies operating without the proper insurance or background checks necessary to keep passengers safe.
Yellow Cab, along with several other taxi companies, has filed suit against Uber and Lyft based on their continued operation in San Antonio — a pattern echoed in cities around the world as the taxi industry struggles to remain competitive against the ridesharing apps. The inaugural week of the World Cup, massive street protests by taxi drivers caused traffic in London, Paris, and Berlin — among other cities — to come to a grinding halt.
Although companies like Uber face sharp legal resistance, it doesn’t seem to be worrying investors much: Uber’s recent announcement that it had raised $1.2 billion brought its valuation to a princely $18.2 billion — a number CEO Travis Kalanik thinks is too low.
Learn more about San Antonio legal representation from the team at Wilson Brown.
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