In what has turned out to be a spectacularly dramatic launch for Lyft—the ridesharing service that allows customers to solicit a ride from their smart phone and pay a “donation” rather than a straight cab fare—it seems the start-up and the state of New York have come to a truce.
At least temporarily.
A judge has ruled against State Attorney General Eric Schneiderman who sought a restraining order against the service in an attempt to delay its launch in New York. In return for the stay of execution, Lyft has agreed to read all the fine print and make sure that its is in formal compliance with NYC taxi regulations.
At issue are state and local regulations that the AG’s office says Lyft hasn’t complied with. These include failure to comply with requirements for insurance, commercial licensing, vehicle safety inspections, defensive-driving training and mandatory drug testing. Lyft has argued that the state is engaging in a prelaunch smear campaign against what is a successful and safe service.
“I’m extending what is essentially a status quo,” Justice Kathryn Freed said at the conclusion of yesterday’s state court hearing, reports Bloomberg.
For the time being, Lyft will comply with state regulation by only using commercially licensed drivers and vehicles—similar to Uber’s agreement with the city. Going forward, the company says it plans to fight for its P2P business model.
“Based on today’s progress, we expect to be operating shortly in New York City and will continue working (with all the relevant regulators)” Edie Campbell Urban, a spokeswoman for Lyft, said yesterday, reports the source.
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