“We always seek to work collaboratively with leaders in the interests of public safety and the community, as we have done successfully in cities and states across the country, and hope to find a path forward for ride-sharing in New York,” Erin Simpson, a spokeswoman for Lyft, wrote in an e-mailed statement.

Insurance Claims

Lyft today asked a judge to block the state's subpoena against the company, arguing the operational documents requested by the state are “utterly irrelevant” to the dispute, court records show.

Lyft doesn't require drivers to hold commercial licenses, conduct vehicle safety inspections or take defensive-driving courses, the state officials claimed. The company also doesn't conduct drug tests on drivers, the officials said.

The New York State Department of Financial Services on July 8 issued a cease and desist letter, saying the company is violating state laws, including selling insurance directly to New York drivers and requiring them to buy from a specific insurer in order to join Lyft's program. Lawsky had said in the letter that DFS is willing to work with Lyft to determine how the company can operate legally in the state.

The New York City Taxi & Limousine Commission also weighed in, saying on July 9 that Lyft hasn't complied with safety requirements and licensing criteria. At the time, Lyft said it would start the service anyway.

Uber Pricing

Uber, which has been operating in the city since 2011, has also encountered legal hurdles in its New York operations with regard to the fee it charges customers. The San Francisco-based company reached an agreement with Schneiderman's office to limit its peak-pricing tactics and cap fees during emergencies, potentially restricting revenue.

Unlike traditional taxis with fixed fares, Uber varies its tariffs depending on demand. Uber agreed with the attorney general's office earlier this week to limit pricing during “abnormal disruptions of the market” under an accord. The company sometimes charged as much as eight times its base rate during storms, Schneiderman said.

While UberX, its lower-priced service, is a ride-sharing offering that competes directly with Lyft in other cities, UberX drivers in New York have official taxi licenses and operate more like a taxi service.

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