Ride-share service Lyft reaches deal with New York

Jul 25, 2014

Ride-share operator Lyft has struck a deal allowing its launch in New York City two weeks after a snag over safety and licensing forced a postponement.

Lyft said it was launching a service in all five boroughs of the city starting at 7:00 pm (2300 GMT) Friday.

"We've finalized an agreement to offer immediate access to our friendly, affordable rides through a licensed model," Lyft said.

"Lyft will serve all corners of the city from Manhattan to Staten Island, starting with a limited beta launch and then a full rollout in coming weeks."

The ride-share service, a rival of Uber, had been due to launch two weeks earlier before city and state officials put the brakes on, citing its failure to comply with local regulations.

New York state finance superintendant Benjamin Lawsky and Attorney General Eric Schneiderman said in a joint statement that Lyft "has agreed to operate in New York State in full compliance with existing laws and regulations."

"The company will launch in New York City with commercial drivers only and will operate in a manner that is consistent with existing laws and regulations," the statement said.

In addition, Lyft will suspend operations in the cities of Buffalo and Rochester by August 1.

"We are pleased that our offices have reached an agreement today with Lyft," the statement said.

"We are firmly committed to the notion that regulators can work constructively with companies so that new ideas can come to the market—and that smart regulation should create an environment where innovators can compete."

The squabble over Lyft was the latest in a simmering war that has played out in cities around the world, where new car-dispatching apps have been challenging regulated taxi services.

The San Francisco-based firm contends the service, which uses a smartphone app and geolocation to put travellers in touch with drivers, saves money for consumers.

Explore further: Ride-share operator Lyft's New York launch hit snag

add to favorites email to friend print save as pdf

Related Stories

California adopts car-sharing service regulations

Sep 19, 2013

Web-based car-sharing companies will have to make sure drivers undergo training and criminal background checks and have commercial liability insurance under rules approved Thursday by California regulators.

Recommended for you

EU Parliament votes to break up Google

Nov 27, 2014

The European Parliament voted overwhelmingly for the break-up of Google Thursday in a largely symbolic vote that nevertheless cast another blow in the four-year standoff between Brussels and the US Internet ...

Toyota finds new air bag issue, recalls more cars

Nov 27, 2014

Toyota Motor Corp. recalled more than 40,000 vehicles in Japan on Thursday as part of a worldwide scare over defective air bags and is investigating a new type of air bag problem that could lead to further recalls.

Netflix sues Yahoo CIO for alleged kickbacks

Nov 26, 2014

Netflix is suing a former company vice president who is now chief information officer at Yahoo, accusing him of receiving money from vendors he hired to work with the video streaming company.

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.