Lyft isn’t giving any lift yet in New York, following an agreement with the Supreme Court of New York requiring the company to adhere to a few more regulations of the Taxi and Limousine Commission (TLC).
The app-based ride company announced Friday in its blog that it will put the roll-out of its peer-to-peer model on hold, until it has complied with the regulations needed. Lyft will meet with TLC starting Monday to enhance the new model of Lyft required to finally receive its complete license from TLC.
“This is a positive step forward and a good demonstration of compromise in balancing innovation with government regulation, and we appreciate the continued efforts of New York City government to find common ground for the betterment of New York,” reads Lyft’s blog post.
TLC’s chairwoman Meera Joshi is said to be “gratified that Lyft will be working with us.”
In the midst of this hold-off is a controversy as to whether the Supreme Court did issue an injunction or not. Based on the statement from the office of the New York Attorney General, a court injunction was issued.
"After Lyft rejected a reasonable request by the State to delay its launch, we filed a motion for a temporary restraining order in State Supreme Court this morning," says a joint statement by Eric Schneiderman, New York State Attorney General, and Benjamin M. Lawsky, New York State Superintendent of Financial Services. "As a result of that action, the court has granted the State a temporary restraining order preventing Lyft from launching this evening in New York City.”
The joint statement also reveals that the involved parties will go back to court this Monday to resolve issues to Rochester and Buffalo, apart from NY.
Lyft, however, dispelled this statement from the offices of the Attorney General and Financial Services.
“We are obtaining the court transcript, and we will obtain statements by those in court to show this is a deliberate misstatement by the AG and DFS. There would be no need for a hearing on Monday if a TRO or injunction was granted,” Lyft says, adding that the insurance claims of AG were never shown in court and that Lyft didn't get the chance to respond.
Research indicates Lyft failed to meet safety requirements of TLC and has yet to complete other procedures to obtain its license, so it is not authorized to dispatch cars for rider-client in New York yet. Lyft operates in over 60 cities in the U.S. In New York alone, with about 500 drivers enrolled.
