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Uber: 'We will be forced to leave town' without repeal

Transportation network company threatens pull-out over City Council ordinance

Startups like Uber -- an app that lets people hail a taxi or car service from their mobile phone -- say they are facing unfair legal challenges from the established players.
Startups like Uber -- an app that lets people hail a taxi or car service from their mobile phone -- say they are facing unfair legal challenges from the established players.

SAN ANTONIO – Officials with rideshare company Uber issued a statement Wednesday threatening to pull their services from the Alamo City if a City Council ordinance regulating transportation network companies is not repealed.

In February, San Antonio Mayor Ivy Taylor said she would ask the council to delay requiring gap insurance coverage for drivers working with TNCs like Lyft and Uber, one of the regulations enacted in the ordinance.

She said it isn't feasible for the city to implement the insurance standards set for in the TNC ordinance because that type of coverage isn't available in Texas.

Taylor also said the city is looking at several options to ease the burden of the existing ordinance: including random drug-testing, alternative fee and payment processes, and having drivers apply in person with a 10-point fingerprint check.

However, Uber's statement Wednesday made clear that the company is not satisfied with the proposed changes, saying the city hasn't gone far enough to make TNCs operations viable in San Antonio.

"Even with the proposed changes, this regulatory framework remains one of the most burdensome in the nation and stymies our ability to operate in San Antonio," Uber Texas General Manager Chris Nakutis said in the statement.

Nakutis urged city leaders to reject the new ordinance outright.

"Without a full repeal, we will be forced to leave town," he said.

The City Council is expected to vote on the proposed changes on Thursday.

Stay tuned KSAT 12 and KSAT.com for more on this developing story.