The City of Austin considers a franchise model to regulate dockless scooter companies.
With new rules for riders in place, it’s still in question what rules the companies themselves will have to abide by. With a franchise model, scooter companies would operate much like taxi companies, including a requirement of city council approval for any new company or expansion.
Council member Jimmy Flannigan said that could create some shady political dealings. He told his colleagues on Council, this could “incentivize the current entrants of the market to be participating polically in a way that I think is not best for what we want to accomplish as a city.” That’s because a franchise model would require any new company to seek city council approval first. Or in other words, companies cutting deals with council members to muscle out future competition.
Discussion on company regulations will come back to council in August.
(Photo:Shutterstock/VDB Photos)
