Buffalo, NY (WBEN/AP) - Attorney General Eric Schneiderman says he has come to an agreement with the ridesharing service Lyft.
In the agreement entered into on Friday, Lyft has agreed to operate in New York State in full compliance with existing laws and regulations. The company will launch in New York City with commercial drivers only and will operate under existing laws and regulations.
In addition, the company will suspend its current operations in Buffalo and Rochester by August 1, 2014, and has committed that it will work with the State so that any future business it undertakes in New York is in full compliance with the law.
"We are pleased that our offices have reached an agreement today with Lyft. We are firmly committed to the notion that regulators can work constructively with companies so that new ideas can come to the market -- and that smart regulation should create an environment where innovators can compete," said Schneiderman in a statement.
"Lyft's launch in New York City -- in full compliance with laws and regulations -- is proof positive of this principle. We will continue to work with Lyft so that any future business it undertakes meets that standard and protects consumer safety. We look forward to exploring solutions that enable companies in the sharing economy to operate and thrive throughout New York State."
Previously, A judge said Lyft had to meet certain requirements before operating in New York City, and the Taxi and Limousine Commission must approve Lyft's app and dispatch operators.
The judge said she' would issue a temporary restraining order barring Lyft from operating if it didn't meet the conditions by July 25.
However, state officials had agreed Lyft could keep functioning in Rochester and Buffalo if it provided information on acceptable insurance carriers.