NEW YORK — Lyft announced it will “pause” operations in Buffalo and Rochester starting Aug.1 following a state Supreme Court temporary restraining order filed against the company because it does not comply with municipal insurance carrier laws.
In a letter announcing its decision, Lyft said the state attorney general filed the order to stop its operations due to “outdated NY insurance laws.” The growing national transportation network company — which just started operating in New York City this week — said it will work with the attorney general to “modernize the law and secure the future of ridesharing in New York.”
The restraining order stated Lyft cannot “offer, sell or provide to New York drivers any insurance policy, including excess liability coverage, unless such coverage complies with the New York Insurance Law."
Members of the Limousine, Bus & Taxi Operators of Upstate New York (LBTOUNY) have been aggressively trying to stop all TNCs from operating in the Buffalo-Rochester region, and have worked with Buffalo city officials to issues a cease and desist order to Lyft, Uber and Rideshare.
Lyft started its service in April under the radar of Buffalo city officials until the LBTOUNY brought the on-demand mobile app ride service to their attention at the meeting.
--Tom Halligan, LCT East Coast editor
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