The Taxi and Limousine Commission (TLC) issued a warning to drivers and passengers that mobile app service Lyft has not been authorized to operate in New York City.
The announcement comes just one day after Lyft stated its intentions to bring the car service to the city on Friday, according to CNET. The startup provides a smartphone app that allows customers to contact part-time motorists driving private cars to get a ride.
"Lyft has not complied with TLC's safety requirements and other licensing criteria to verify the integrity and qualifications of the drivers or vehicles used in their service, and Lyft does not hold a license to dispatch cars to pick up passengers," the commission said in a letter. "In keeping with the TLC's priority of protecting public safety and consumer rights, the agency will be conducting enforcement operations to make ensure compliance with the City's rules and laws."
Lyft already operates in over 60 cities across the U.S., and had planned to begin offering its service in Brooklyn and Queens, the New York Times reported. Friday's debut of the service in New York would have over 500 drivers give rides in cars with fuzzy pink mustaches, and was intended to be the company's largest introduction in a city. However, the TLC made its decision Wednesday because the company did not arrange an operation agreement with New York City regulators beforehand.
TLC said in its letter that Lyft's drivers have not completed its drug, criminal and traffic-related background checks that licensed TLC drivers have to go through. The commission added that the company's cars haven't gone through the required safety and emission inspections, since Lyft drivers use their own cars.
In response to the TLC's letter, the startup said it didn't believe the commissions licensing applied to the company because of its business model, and ensured that safety is a top priority, CNET reported.
Lyft added that it will have reviews of drivers' criminal and driving records and vehicle inspections to show its commitment to safety. It will also require drivers to have a business automobile liability insurance policy. The safety commitment adds that drivers will only be allowed to accept rides that have been arranged through the app.
TLC has had similar conflicts with mobile app services before, having questioned Uber about its legality when it started to offer its service in Manhattan in 2012, the New York Times reported.
Despite the commission's announcement, Lyft spokeswoman Erin Simpson said the company still looks to begin operation in New York on Friday.
"It's important to clarify that our differences of opinion are not about safety standards, and that's because we put safety first," Simpson said. "Where we differ with the T.L.C. is that we do not believe its licensing and base station rules apply to the Lyft ride-sharing model.
"We'll continue to work with all stakeholders to create a path forward."
