MonkeyParking Makers Back Down in Standoff with City of San Francisco

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    The MonkeyParking app is seen in this file image.

    The makers of an app that matches drivers in need with much-coveted parking spots are backing down in their standoff with the city.

    MonkeyParking has suspended its service in San Francisco, after receiving a cease and desist letter from the city attorney last month.

    The app allowed users to auction off their public parking spots to other drivers. That's illegal in San Francisco, and City Hall took a firm stand on the issue.

    San Francisco City Attorney Dennis Herrera’s letter said MonkeyParking and makers of similar apps would face a $2,500 fine, and a lawsuit, if they didn’t stop operations by July 11. His letter brought up issues of safety, logistics and equity regarding the controversial apps in a city where parking is in short supply.

    But MonkeyParking isn't giving up. Its co-founder told NBC Bay Area company’s executives are traveling to San Francisco with hopes of collaborating with the city.