Ride sharing company Lyft threatens to leave Houston

HOUSTON (KTRK) -- It's no secret that veteran cab drivers didn't embrace ride-sharing companies Uber and Lyft when they moved into Houston earlier this year. Touting slick smartphone apps, cheaper fares, and friendly drivers, the app-based transportation companies quickly garnered fans.

Some of that enthusiasm though, may be short-lived. Lyft, the ride-sharing company where drivers sport pink mustaches on the front of their cars, is threatening to pull out of Houston.

Back in August, Houston City Council passed a new set of regulations so ride-sharing companies can operate legally. Now, just a week before the rules go into effect, Lyft is sending emails to its customers. The company says the city's regulation requirements are too cumbersome and time consuming.

"You have to go in multiple times," says Lyft Vice President of Government Affairs David Estrada. "You go in for a drug test, for a fingerprint test, you have to show up and see if there are any warrants for your arrest, kind of a scary prospect, and you have to show up and have the city inspect the vehicle."

Estrada says those steps would be too tough for the average, part time Lyft driver to complete. Instead, the company wants the city to go with its own plan, which uses an outside. Lyft says its system can get a driver legally on the road in about five minutes.

We decided to put the Lyft App to use, and called up a driver to get his opinion. Harold Smyser pulled up, and told us he's been a full-time Lyft driver since May.

Would you be willing to get registered, we asked? "Yes," said Smyser, "Absolutely." Smyser says business has been so good that he thinks registering would be well worth the time and effort.

City officials say Lyft has known from day one the regulations council members wanted in place for all vehicles for hire. It took eight long months to pass the current regulation. Therefore, there is little appetite to change anything.

"I'm surprised (Lyft wants to leave) because they have been here since the beginning and we were really looking forward to working with them, and I think it's good option for competition," said Tina Paez, director of the Administrative and Regulatory Affairs Department, which manages vehicles for hire in the city. "I believe they will be back."

Lyft says it could pull out of Houston within weeks if City Council refuses to rework the rules. If that happens, Smyser will be disappointed.

"Then I'll need to find a full time job," he said. Smyser says that could very well mean that he will move over to become an Uber driver.