Austin’s Department of Transportation Wants to Fine a Facebook Group

By July 17, 2016Bitcoin Business

On late Friday afternoon, two Austin Transportation Department officers, accompanied by four APD police officers, sauntered around The Capitol Factory, an Austin coworking space. The officers were looking for Christopher David, CEO of the Craigslist-style listing service for various services, Arcade City . They did not find him.

Cheyenne Krause, Austin Department of Transportation press contact, told Motherboard: “Our Ground Transportation Regulation went to the offices of Arcade City to issue a citation to an individual who represented the company. The individual was not at the office. We got additional information and left. We have not issued a citation to the company as yet.”

Arcade City’s best known service, which the company markets but does not claim as its property, is a Facebook group called Arcade City Austin / Request A Ride , where people offer and request rides. It boasts 26,000 group members. The startup says its app, planned for August, will incorporate blockchain technology inspired by Bitcoin.

In May, Uber and Lyft left Austin amid a dispute with the city . That created an opportunity for Arcade City. David immediately moved the headquarters of Arcade City from New Hampshire to Austin.

As David, a controversial entrepreneur accused of abandoning numerous ventures , told Motherboard: “The city is currently freaking out about a Facebook group.” However, rides are facilitated through the brand’s name on Facebook, and Austin’s city council enacted in June penalties for ridesharing services which failed to comply with city ordinances.

David learned officials sought him only after Joshua Baer, The Capital Factory CEO, tweeted a video of the officers.

The officers were looking to cite Arcade City for operating a ridesharing service sans operating authority from the city—a Class C misdemeanor and up to $500 fine.

A spokesperson for the city said police were requested should the corporate representative—David is the only […]

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