Last week, Attorney General Schneiderman announced that his office and the state’s Department of Financial Services (DFS) have reached a settlement with Lyft, the ridesharing company.

Last July, the Attorney General and DFS sued Lyft, which dispatches drivers via a smartphone app, for running a for-hire livery service but not requiring its drivers to hold commercial licenses, carry adequate insurance, or comply with local for-hire licensing rules.

Under the terms of the settlement, Lyft drivers will be required to have auto insurance issued by New York-authorized insurers, and the company has agreed to comply with all other state at well as municipal laws applicable to vehicles-for-hire. Lyft will also pay $300,000 in penalties.

Attorney General Schneiderman said:

“I have always been committed to fostering an innovative and competitive environment in which both new and existing companies can flourish in our great state.  However, it’s critical that the laws put in place to protect consumers and ensure fair competition are not violated in the process. 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.”

We’re pleased that the company has resolved its issues with state regulators.  We hope that it will be able to operate once again in Buffalo and Rochester, and perhaps even spread to other Upstate communities.