US-based ride sharing service Lyft has settled a suit which alleged that the company violated the state laws of New York by paying $300,000.
Last year Attorney General of New York Eric Schneiderman and former NY Superintendent of Financial Services Benjamin Lawsky sued the company for what was termed as an illegal service within the country. The suit also went on to allege that Lyft ran an illegal insurance business as the company sold insurance policies to its drivers.
As a measure to counter react the allegation on insurance, Lyft will now ask all its drivers to get a state-approved insurance. The company has also announced that it will henceforth comply with state and municipal laws.
Lyft has struggled to expand in New York mainly due to competition from Uber. But it also had issues with the state considering the company as a for-hire livery company, where drivers usually hold commercial licenses. In the US, such laws are different from state to state, which explains why Lyft did not run into trouble with any other state.
While clearing out the issue and resolving it with the state, Lyft also released a statement: “Today’s mutually agreed upon 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, an effort supported by leaders and consumers across the state.”
Last year Attorney General of New York Eric Schneiderman and former NY Superintendent of Financial Services Benjamin Lawsky sued the company for what was termed as an illegal service within the country. The suit also went on to allege that Lyft ran an illegal insurance business as the company sold insurance policies to its drivers.
As a measure to counter react the allegation on insurance, Lyft will now ask all its drivers to get a state-approved insurance. The company has also announced that it will henceforth comply with state and municipal laws.
Lyft has struggled to expand in New York mainly due to competition from Uber. But it also had issues with the state considering the company as a for-hire livery company, where drivers usually hold commercial licenses. In the US, such laws are different from state to state, which explains why Lyft did not run into trouble with any other state.
While clearing out the issue and resolving it with the state, Lyft also released a statement: “Today’s mutually agreed upon 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, an effort supported by leaders and consumers across the state.”