The ride-sharing service Lyft’s New York City operation remained stalled Monday after a judge urged the app-based company to reach a settlement with city and state officials over regulations.
Lyft officials backed down from what Assistant Attorney General Jane Azia called a “shoot first and ask questions later kind of attitude,” promising to use TLC licensed drivers and vehicles after the state and the city sued to block the company from launching in Brooklyn and Queens last week.
Lyft, founded in San Francisco in 2012, is now available in 60 US cities. It bills itself as a ride-sharing program and although payment is donation based, drivers can also give a digital thumbs down to riders who don’t pay.
City attorney Michelle Goldberg-Cahn accused Lyft of disguising itself as a free service to skirt cumbersome regulations that apply to livery cars and taxis.
“We think this is simply a gypsy cab service dressed up with a fancy pink mustache,” said Goldberg-Cahn, referencing the company’s trademark logos plastered on vehicles for easy identification by passengers.
Goldberg-Cahn also accused Lyft of putting New Yorkers at risk by not adequately screening drivers or providing proper insurance.
Manhattan Supreme Court Justice Kathryn Freed told the parties to work out an agreement before returning to court on Friday — in the interim Lyft promised to keep their cars off city streets.
But Lyft is still operating in Buffalo and Rochester, NY where the service has provided 15,000 rides since starting in late April. Over 75,000 city residents have already downloaded their app, according to Lyft.
“The service is definitely wanted. The service is definitely needed,” the company’s attorney Alan Slcar argued. “We’re happy to work together with the TLC to bring Lyft to New York.”