Texas lawmakers are proposing new rules to curb the growing number of ride-hailing companies operating in the state.
The legislation is set to be heard Wednesday.
The proposal comes as Texas, one of the fastest-growing ride-sharing states, faces a shortage of available drivers for Uber, which has become an increasing threat to existing taxi and limo businesses.
Uber drivers in the Lone Star State have faced increasing attacks from taxi unions and state regulators who are seeking to impose more stringent regulations on the company.
Texas has about 2,600 licensed limo companies, with some driving to and from major festivals like the Super Bowl.
While Uber and Lyft have largely been shut out of Texas, the companies have also begun operating in other states, including Florida and Arizona.
The new regulations would impose a fee of $250 per trip and a ban on the vehicles in the business that include “any vehicle used as a vehicle for the transportation of passengers or passengers for compensation,” according to the proposed legislation.
“It’s hard to see any other ride-share services that are doing well in Texas,” said state Sen. David Simpson, who represents the Dallas-Fort Worth area.
“This is an industry that is thriving, and if they want to do business in the region, they’re going to have to comply with regulations.”
A Lyft spokesperson told Ars the company is looking into the proposal.