Silicon Valley Is Having a Meltdown Because It Can���t Use Uber and Lyft at SXSW

Last May, voters in Austin, Texas, backed their city government���s hard line on background checks for Uber and Lyft drivers. Both companies exited the city immediately, putting regular users of the ride-hailing services in a fix���and leaving more than 10,000 drivers high and dry.

What has happened since has been considered a free-market success story, as the absence of the Silicon Valley duopoly made room for a handful of newer alternatives���by August, 10 licensed ride-haili...