Local NewsStatewide NewsTaxes & SpendingUber Hub in Dallas Gets the Green Light from Governor Abbott

According to the governor, the Texas Enterprise Fund's taxpayer-backed grant funding for Uber could yield $75 million in capital investment.
August 20, 2019
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Texas Governor Greg Abbott has approved a $24 million grant from the taxpayer-backed Texas Enterprise Fund (TEF) for a new Uber hub in Dallas.

The maneuver, Abbott says, will drive the creation of 3,000 more jobs in Texas.

“I am proud to welcome Uber’s investment in the great state of Texas, along with the 3,000 jobs the company will bring to its new Dallas office,” said Governor Abbott.

He added, “This investment will bolster Texas’ continued economic success and reputation as the best state for business. Our unrivaled workforce and business-friendly environment make Texas the perfect home for innovative companies like Uber.”

The San Francisco-based company was founded a decade ago and has since turned into one of the premier ride-sharing services — leaving more traditional transportation services like taxi unions in the rearview mirror.

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Due to the shifting nature of the transportation market that Uber largely caused, taxi unions have experienced proverbial road-rage over the competition Uber poses — going so far as to lobby the government to ban or strictly regulate the ride-sharing company, with varying degrees of success.

In the waning weeks of 2015, the Austin City Council passed an ordinance requiring ride-sharing services to implement fingerprint background checks on drivers, which caused Uber (and its competitor Lyft) to steer away from the Texas capital. That local law was overridden by a state law passed in 2017 which loosened regulations to a point that the companies deemed acceptable, who then resumed operations in Austin.

Dale Petroskey, the Dallas Regional Chamber CEO, said Uber chose Dallas because of the “depth of innovation and technology talent that is moving to the Dallas region.”

Dallas Mayor Eric Johnson said, “The numbers that make up this investment package add up to a win for Uber Technologies and for the City of Dallas. But beyond the math, Dallas and Uber are just a great match. Dallas is a vibrant, diverse, welcoming, and innovative city, and I’m certain Uber and its employees will flourish here.”

Uber CEO Dara Khosrowshahi stated, “Uber is excited to bring this major investment to Texas and to increase our commitment to the City of Dallas. We are grateful for our partnership with Governor Abbott, Mayor Johnson, and Judge Jenkins and their leadership in making this a reality.”

Uber’s stock has been on a bumpy ride of late. But the company’s leaders believe Texas will help improve their business model and ultimately the results that the company produces.

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Brad Johnson

Brad Johnson

Brad Johnson is an Ohio native who graduated from the University of Cincinnati in 2017. He is an avid sports fan who most enjoys watching his favorite teams continue their title drought throughout his cognizant lifetime. In his free time, you may find Brad watching and quoting Monty Python productions.

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