text: Lyft begins researching the Houston market - Houston Business Journal
  Lyft floats the idea of a Houston market play
  Dec 20, 2013, 2:21pm CST
  You might begin seeing pink mustaches all across town.
  Lyft, a transportation technology company that has a ridesharing app and advertises itself with pink mustaches, is strategizing its entry into the Houston market.
  San Francisco-based Lyft confirmed to the Houston Business Journal that this month it started conducting market research in Houston. This entails testing out advertising, putting up job postings for Lyft drivers and putting a few people on the ground in Houston to gauge esponse to the technology.
  Despite Lyft's efforts, the fact remains that the company's service is currently illegal in Houston. This could cause some problems going forward.
  The Lyft app operates as a kind of car service. Customers that want a ride can download the app, input their credit card information and request a ride. The drivers for Lyft's service most often are not professional drivers. Anyone can apply to be a Lyft driver if they have a car, and the company will check their background and DMV record as well as inspect their vehicle.
  When a driver arrives to pick up a customer, they adorn their car with pink mustaches and then give the customer a fist bump, a touch that emphasizes the company's slogan, "Your friend with a car." After the ride, the customer pays a donation — suggestions are provided — to the driver via the app. The customer also rates the driver, and this rating is displayed for future customers.
  Lyft takes a percentage of the payment, but drivers earn money from their service. Lyft advertises that drivers can earn $20 an hour and set their own hours, which is ideal for part-time employees looking to earn extra cash.
  The issue Lyft must face is that the city of Houston has regulations in place that prevent Lyft from operating. This past summer, another transportation technology company, San Francisco-based Uber Technologies Inc., ran up against these problems when it started planning its entry into Houston.
  One of the chief points of concern with the city regulations is that the city determines the rate per mile for taxis and limos, but apps like Uber and Lyft do not follow that structure.
  The greatest opponent to changing regulations has been Houston's Yellow Cab, led by Roman Martinez, who argues that these apps will create an unfair advantage for taxis. Martinez is not alone in his fight. Apps like Uber and Lyft have faced regulatory issues in multiple cities, including Dallas.
  The City of Houston is currently in talks with Uber, Lyft and Yellow Cab concerning changes to taxi regulations and new transportation technology use.
  "We would love to be in Houston," said Paige Thelen, a Lyft spokeswoman. "There is a car culture here, and we would like to add another option for folks to get around."