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Half-priced Uber rides aim to boost Austin's downtown business

A view of downtown Austin, TX from the top floor of the Waterline building on Thursday, July 31, 2025.
Lorianne Willett
/
KUT News
The Downtown Austin Alliance is covering up to half the cost of Uber trips to and from downtown in December, a pilot program intended to help businesses weather years of construction disruption.

As downtown restaurants and bars head into what's supposed to be one of their busiest times of the year, construction isn't making it very holly jolly.

The I-35 expansion and the new high-rise projects nibble at the edges, but one project is proving to be the most disruptive of all: the years-long reconstruction of the Austin Convention Center.

Now, there's a new incentive meant to lure people back downtown: half-priced Uber rides through the holidays.

"Our public agencies have been clear with us that this construction is only going to really intensify over the next decade," said Vanessa Olson with the Downtown Austin Alliance (DAA), which is subsidizing the Uber rides. "We're testing this program and many others to see what works to make sure people can still support those downtown businesses."

During December, the DAA will pay 50% of the cost for Uber rides to and from downtown within a 30-mile radius. The maximum subsidy is $40 per ride and doesn't include the tip.

The vouchers can be be claimed now at xoxodowntown.com and used Dec. 1 through Jan. 1 at 8 a.m., allowing for a ride home after New Year's Eve.

The DAA has 5,000 vouchers available. Each voucher covers up to six rides. Olson says if all the vouchers are claimed, they might release more later in December.

An Uber and Lyft ride-share vehicle on Guadalupe Street near UT-Austin campus.
Gabriel C. Pérez
/
KUT News
The DAA subsidy in December applies to Uber rides to and from downtown, within a 30-mile radius. That would include suburbs like Manor, Kyle and Leander.

"It's very difficult to tell exactly the cost of each trip," Olson said, because vouchers could be used for a trip to South Austin or a 27-mile drive to Kyle. "We'll be monitoring it closely and if we are still within our budget, it is very possible for us to release more vouchers say mid-month."

Money for the rides is coming from the DAA's $14.3 million annual budget, which is mostly funded by a tax on privately-owned downtown properties. The DAA also sponsors the KUT and KUTX Holiday Sing-Along and Stroll.

This Uber promotion comes during the first holiday season of the Austin Convention Center expansion and redevelopment, a $1.6 billion project that will nearly double the facility's rentable space to 620,000 square feet.

The convention center isn't expected to reopen until early 2029, leaving downtown without 300,000-plus annual convention attendees.

The Austin Convention Center construction site on Thursday, July 31, 2025.
Lorianne Willett
/
KUT News
A view of the Austin Convention Center site in July. The expanded convention center is expected to be complete in late 2028 and reopen in 2029.

Businesses closest to the construction site are being dealt a double whammy. On top of seeing fewer tourists, they're also dealing with construction vehicles, fencing and road closures.

"You can feel the vibration," said Joe Nguyen, operations manager for Moonshine Grill. "The noise level is just so freaking loud." He said all the dust has them constantly having to replace HVAC filters.

Since 2002, Moonshine has served Southern comfort food inside a historic 19th century building directly across from the convention center on Red River Street.

"Overall, we're down 30% to 40%," Nguyen said. "Lunch business is down 70%."

Nguyen called the DAA's half-priced Uber rides "a fantastic idea of just at least trying something." He acknowledged it won't solve all their problems but said it's "better than not doing anything at all."

The Moonshine Grill is pictured on Oct. 20, 2021, in downtown Austin.
Michael Minasi
/
KUT News
The Moonshine Grill in 2021. The building, known as "Sunday House," was built in the mid-1860s and is believed by some to be haunted.

Even restaurants and bars blocks away from the construction zone have seen a decline.

"I would say our sales are off by probably about 20% to 25% with the absence of the convention center," said Heather Potts, co-owner of Cedar Door and Foxy's Proper Pub at Brazos and Second streets. "The convention center was a big part of our business model."

Potts hopes the Uber subsidy brings more Austinites downtown and raises awareness about the struggles facing bars, restaurants and retailers. But she's also hoping for a boom in business when the double-sized convention center reopens in 2029.

"I'm super excited about when it will be finished, definitely," she said. "I need a countdown clock."

Nathan Bernier is the transportation reporter at KUT. He covers the big projects that are reshaping how we get around Austin, like the I-35 overhaul, the airport's rapid growth and the multibillion-dollar transit expansion Project Connect. He also focuses on the daily changes that affect how we walk, bike and drive around the city. Got a tip? Email him at nbernier@kut.org. Follow him on X @KUTnathan.
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