Tech Leaders Debate Austin as Hub Over Uber Loss

When local law and innovation opportunities clash, such as with some cities and Uber, tech leaders can get terse on social media.

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In recent Uber news, accused of tax offenses and suggestions of its business model posing criminal liabilities with respect to local law, the company’s business platform is met with resistance in Quebec City, Quebec, Canada.

Uber had hoped to gain special legal status in the Canadian city, as it has in cities across the United States.

In a Globe and Mail opinion piece, Yves Boisvert asks, “Why would you get a tax break or special status in the name of innovation?” Boisvert then questions why a city would negotiate with a company that “shows obvious disregard for the law.”

These are valid questions posed at tech in general, but Silicon Valley venture capitalists and tech leaders are certainly not answering them well as they lash out via social media at Austin, Texas.

In May, the Lone Star State tech hub voted against a local referendum that would have allowed ride-hailing companies like Uber and Lyft to forego the fingerprinting of drivers required of taxi companies.

Tech leaders might disagree with Austin’s decision. But some are going as far to say that the city will actually lose its status as a tech hub over Uber’s departure.

Such remarks, and the general back and forth between various tech leaders over Uber’s loss in Austin, read like excerpts on the cutting room floor of HBO’s Silicon Valley.

Here are some of the comments, included in a report by Sara Ashley O’Brien of WTVW of Evansville, Ind.:

  • Paul Graham, cofounder of Y Combinator, tweeted that without Uber and Lyft, Austin is finished as a tech hub. “As years pass it gets increasingly implausible to be both a startup hub and not have U/L,” he said.

Andrea Fox is Editor of Gov1.com and Senior Editor at Lexipol. She is based in Massachusetts.