Lyft announced Friday that it has put on hold plans to rollout its ride-sharing service in New York City due to regulatory hurdles from the city's Taxi and Limousine Commission.
The news of Lyft coming to New York City brought some excitement among the city's drivers on Tuesday, but the ride-sharing service updated its blog announcing a delay in the NYC roll-out. The decision to hinder the planned move follows Taxi and Limousine Commission's regulatory hurdles. Lyft earlier exempted itself from TLC's regulations but now says the service will not be rolled out until "it complies with New York City Taxi and Limousine regulations."
The commission warned Lyft drivers about the possibility of being fined up to $200 for ride-sharing operations in the city. TLC also said it had the right to seize the car if anyone offers rides to passengers via Lyft app. But Lyft remained confident of launching the service Friday until just a day before the case landed in court
"We will meet with the TLC beginning Monday to work on a new version of Lyft that is fully-licensed by the TLC, and we will launch immediately upon the TLC's approval," Lyft wrote in its official blog, Friday. "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."
Lyft sought a temporary restraining order but the judge adjourned till Monday. Operating the Lyft ride-sharing service in the city is illegal without a TLC license. The regulators demanded Lyft comply with TLC's mandatory driver background checks, drug tests and regular inspection of the vehicles.
Lyft currently operates in more than 60 cities and its New York expansion was limited to Brooklyn and Queens. The company allows personal car owners to sign up for the service and offer rides to passengers, who will be prompted to give a tip at the end of the trip. The ride-sharing service is deemed challenging to the standard taxi service as people can save up to 30 percent on fares compared to yellow cabs. Uber has been successfully operating in New York for more than three years and offers similar pricing as Lyft.
