February 1, 2016 4:56 PM

Updated: Uber to leave two Texas cities: Galveston and Midland

Company tells QR's Eva Ruth Moravec it is changing tactics and will no longer enter cities that don't already have regulations in sync with their business model.

Ride-hailing company Uber Technologies Inc. is leaving two Texas cities – Midland and Galveston – and has a new strategy for dealing with cities with unfriendly rules.

Uber will no longer enter Texas cities that don't already have regulations favorable to transportation network companies, or TNCs, the San Francisco-based company told the Quorum Report Monday.

In an exclusive interview, Sarfraz Maredia, Uber's Houston-based general manager, said in keeping with the new strategy Uber will cease operations immediately Monday in those two cities, which combined are home to about 1,000 drivers.

"We're shifting our expansion strategy and we're focusing on markets that already have modern ridesharing regulations," Maredia said. "We'll focus on markets that acknowledge the benefits of ridesharing."

By Eva Ruth Moravec