Lyft Inc., a ride-sharing application, made an agreement to only utilize NY-based commercial drivers while complying with local and state law as it gears up for its operations in New York this Friday.
Based on the agreement filed in the NY Supreme Court on Friday, the San Francisco-based firm will also be suspending operations in Rochester and Buffalo by next month. At the same time, the company is asked to halt selling of insurance to NY drivers, unless the mentioned coverage is in compliance with the state law.
Attorneys Benjamin Lawsky, an insurance regulator, and Eric Schneiderman, an attorney general, filed a suit early this month which accused Lyft Inc. for illegal operations by using commercial drivers without insurance and license from the NY City’s taxi commission.
Lyft Inc., which began its Rochester and Buffalo operations on April and with plans on branching out to Queens and Brooklyn, said it’s never about being a “for-hire” car servicing firm. Instead, the firm simply aids car owners to offer rides to others in exchange for donation.