Ride-sharing Lyft blocked from New York City

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Associated Press

Posted on July 11, 2014 at 10:01 AM

Updated Friday, Jul 11 at 1:06 PM

ALBANY, N.Y. (AP) — New York officials say they've obtained a temporary restraining order against Lyft, the on-demand ride-sharing app, from operating in New York City.

The attorney general's office and the Department of Financial Services sued only hours before San Francisco-based Lyft planned to enter the market. The lawsuit said the company actually operates as a traditional for-hire livery service using mobile technology, not a peer-to-peer transportation platform as claimed.

According to the lawsuit filed in state court in Manhattan, the company operates "in open defiance" of state and local licensing and insurance laws.

Authorities allege Lyft began operating in Buffalo and Rochester without authorizations in April and currently violates various laws.

A spokeswoman said the company was "in a legal process with local regulators" on Friday "and will proceed accordingly."

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