June 23, 2017

City officials: Criminal probe into Uber reaches Austin

1 A vehicle displays both Uber and Lyft signs in May 2016, shortly before both companies left Austin. STEPHEN SPILLMAN/FOR AMERICAN-STATESMAN A U.S. Department of Justice criminal investigation into Uber’s operations now includes how the company operated in Austin, officials confirmed Monday.

A city spokesman confirmed that Justice Department officials contacted staffers at Austin’s Transportation Department and Aviation Department seeking information about Uber’s operations and regulatory information while the ride-hailing behemoth provided rides in Austin. Those departments oversee how ride-hailing companies and taxicabs operate in the city and at the airport.

On Friday, Reuters first reported that the Justice Department had launched a criminal investigation into a controversial Uber software program called Greyball. According to The New York Times , Uber used the software in cities where it had been prohibited from operating, helping it avoid detection by police or code enforcement officers trying to catch the ride-hailing company violating local laws.

Uber began providing rides June 3, 2014, without Austin’s approval, a few days after Lyft did so. It wasn’t until October 2014 that the City Council approved rules allowing ride-hailing companies to operate under certain restrictions. Both companies left the Austin market in May 2016 after voters rejected a […]

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The News for the Gig Economy Staff is constantly searching the web for the latest news regarding freelancing and gig platforms to bring them to you in one handy place. All articles with this generic author have been sourced with the original location at the bottom of the piece. We encourage our readers to view the original source of all excerpts. NGE is a project of ARC Online, LLC.

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