Lyft is set to launch its ridesharing service in Brooklyn and Queens Friday night.
But the Taxi and Limousine Commission and NY Attorney General filed temporary restraining orders against Lyft today.
“We are in state supreme court seeking a TRO, as is the AG,” TLC spokesperson Allan Fromberg told Business Insider via email.
In order to obtain a TRO, the TLC and AG need to be able to convince the judge that they will suffer immediate irreparable harm unless the order is issued.
Meanwhile, Lyft is also getting attacked on another regulatory front. The company recently got slammed with a cease-and-desist letter from the state Department of Financial Services.
“Lyft’s ongoing law violations will not be tolerated and must halt,” Superintendent Benjamin Lawsky wrote in the letter, which was obtained by Crains New York.
The issue with Lyft launching in New York has everything to do with regulation and licensing. In order for Lyft to be in good standing with the TLC, they’d have to apply and meet the criteria for having a TLC-licensed dispatch base. They’d also have to work exclusively with properly-licensed vehicles and drivers.
Uber does this in New York, but Lyft has previously said that it doesn’t believe that the licensing and base station rules apply to its ridesharing model.
It’s not clear if Lyft will still launch today, but we’re waiting for comment from Lyft. The company provided The Verge with the following statement:
We are in a legal process with local regulators today and will proceed accordingly. We always seek to work collaboratively with leaders in the interests of public safety and the community, as we’ve done successfully in cities and states across the country, and hope to find a path forward for ridesharing in New York.
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