Lyft to pay $300,000 to settle New York lawsuit
A Lyft car crosses Market Street in San Francisco in 2013.
Lyft has agreed to pay $300,000 to settle a lawsuit by the New York attorney general alleging that the ride-sharing company violated state and municipal laws.
The lawsuit, filed last July, accused San Francisco-based Lyft of failing to require its drivers to hold commercial operator’s licenses, carry adequate insurance and comply with local for-hire licensing rules.
“Today’s agreement enables Lyft to grow and prosper within the bounds of state and local regulations, while the penalties imposed send the message that companies that attempt to skirt the law will be held accountable,” New York Atty. Gen. Eric Schneiderman said in a statement.
Lyft said in a statement that the settlement “does not require any changes to existing Lyft service in New York. The settlement is part of our continued efforts to return true, peer to peer ride sharing to New York State at large.”
The settlement comes at a time when the ride-sharing industry is facing increased scrutiny from regulators across the U.S
The California Labor Commission earlier this month ruled that a San Francisco Uber driver was entitled to receive more than $4,000 in compensation for mileage and toll expenses. And in recent months Uber halted its services in Kansas and Nevada after hitting roadblocks with state regulators.
States and municipalities are attempting to regulate these companies as the industry quickly grows as an alternative to traditional cab rides, public transportation and other driver services.
Lyft’s mobile app allows users to book a ride from a nearby driver. Lyft was founded in 2012 and operates in several cities across the nation, including Los Angeles, Boston, Chicago and Dallas.
