Nonprofit Battles for Ride-Hailing Market Share in Austin

Two years ago, “Uber and Lyft left Austin following a battle with the city over background checks for ride-hailing drivers,” recalls Sebastian Herrera in the Austin American-Statesman. Filling the market gap, Andy Tryba led an effort to create RideAustin, a nonprofit ride-hailing service. RideAustin, notes Herrera, “gained notoriety as a locally run alternative to Uber and Lyft that has operated as a nonprofit, letting riders donate to local causes through its app.”
RideAustin did well out of the gate, writes Herrera, “as residents embraced the organization as a local brand that followed the city’s background check rules.” Being a nonprofit means that RideAustin operates a bit differently than for-profit firms. On its website, RideAustin indicates that it chose the nonprofit form to “enable drivers to earn more and riders to pay less while helping support local charities and improve mobility for underserved communities.” Herrera also notes that “in 2016, RideAustin donated more than $43,000 to charities, nonprofits, and community organizations” and that last year “the nonprofit joined Travis County’s Community Care Collaborative and the University of Texas Dell Medical School to pilot a program to give low-income residents rides to and from medical appointments.”