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HeyRide Bought Out by San Francisco Rival

courtesy Heyride

SideCar, a San Francisco company that uses smartphones to connect car owners with people who need a ride, has acquired HeyRide, an Austin company that tried to do the same thing.

HeyRide received a cease and desist order in November from the city of Austin. The city said the startup operated like a cab service but didn’t take the same safety and regulatory precautions.

A spokesperson for the city's Transportation Department says HeyRide continued to operate, despite the cease and desist letter. On January 5th, the city issued citations to two people offering services as drivers using HeyRide, and to the company itself for operating an unlicensed cab service.

Josh Huck, CEO of HeyRide, says peer-to-peer ride sharing isn’t going away.

“I’m excited about the possibilities and I know that even the transportation department can’t stand up to this tsunami,” Huck said. “It’s a movement that’s growing. It’s something that people are really enthusiastic and excited about.”

SideCar expects to be fully operational in time for South by Southwest in March.