According to what I heard on KUT this morning (which was probably just them reading from another news source), Uber and Lyft won't do pickups within the city of Austin. But they will still pick up in Pflugerville, Round Rock, Cedar Park, Leander, Georgetown, and the remainder of metro Austin...just not within the city of Austin.
Lyft has updated the coverage map, you can see it toward the bottom of the page here:
https://www.lyft.com/cities/austin
Prior to this, both Uber and Lyft had reduced coverage to both the north and south; now at least Lyft looks to go way above Georgetown (neither would pick up there before).