New York – NY AG Seeks To Prevent Expansion Of Car Service Lyft

    1

    New York – New York authorities on Friday asked a judge to stop car service Lyft Inc from operating in the state, saying it has ignored the law.

    Join our WhatsApp group

    Subscribe to our Daily Roundup Email


    The San Francisco-based company is not licensed to do business in New York, uses drivers who are not commercially licensed and vehicles that are not commercially insured, Attorney General Eric Schneiderman and Superintendent of Financial Services Benjamin Lawsky said in court papers filed in State Supreme Court in Manhattan on Friday.

    In the complaint, the government sought a temporary restraining order and a preliminary injunction prohibiting Lyft from operating what it called “an unlicensed for-hire livery service and insurance business” in violation of state and local law.

    Competitors to Lyft include Sidecar, which also links passengers with drivers who use their personal vehicles; and Uber, Flywheel and Hailo, which connect passengers and taxis.

    In New York, Lyft began operating in Buffalo and Rochester in April and had planned to expand in Brooklyn and Queens on Friday night, despite warnings from Schneiderman and Lawsky, according to the complaint.

    “As it has done in every other city in which it operates, defendant has simply waltzed into New York and set up shop while defying every law passed whose very purpose is to protect the people of the state of New York,” Schneiderman said in an accompanying brief.

    Lyft spokesperson Erin Simpson said the company hoped an agreement could be worked out with New York regulators.

    “We always seek to work collaboratively with leaders in the interests of public safety and the community, as we’ve done successfully in cities and states across the country, and hope to find a path forward for ridesharing in New York,” Simpson said.

    Lyft allows people to use a smartphone to request a ride within minutes from a “background-checked driver,” whom they pay with a stored credit card when the ride ends, according to its website.

    For payment, Lyft collects suggested donations in some cities and charges a set amount in others, the website says.

    The company offers drivers an insurance plan intended to backstop their personal coverage that includes a $1 million limit covering liability for bodily injury or property damage sustained by passengers, according to the website. It operates in more than 30 states, including California, Michigan and Texas, the website says.


    Listen to the VINnews podcast on:

    iTunes | Spotify | Google Podcasts | Stitcher | Podbean | Amazon

    Follow VINnews for Breaking News Updates


    Connect with VINnews

    Join our WhatsApp group


    1 Comment
    Most Voted
    Newest Oldest
    Inline Feedbacks
    View all comments
    9 years ago

    “defying every law passed whose very purpose is to protect the people of the state of New York”

    Does Schneiderman think we are all stupid? These laws protect no one but the moneyed owners of taxi medallions from market competition.