Court blocks Lyft launch in NYC

The Associated Press | AP

ALBANY, N.Y. (AP) — New York officials have won a court restraining order that temporarily blocks Lyft, the on-demand ride-sharing app, from launching in New York City.

The order was issued Friday, hours before San Francisco-based Lyft planned to enter the state's largest municipal market. The suit says the company actually operates as a traditional for-hire livery service using mobile technology, not a peer-to-peer transportation platform as Lyft claimed.

New York Attorney General Eric Schneiderman and Benjamin Lawsky, the state's Superintendent of Financial Services, said they sought the state Supreme Court order because Lyft rejected a "reasonable request" to delay the launch for further government reviews.

The order bars Lyft from offering rides pending a hearing on Monday, when both sides are scheduled to return to court for legal arguments. The hearing will also address issues about Lyft's previously launched operations in Buffalo and Rochester, Schneiderman and Lawsky said.

The suit says Lyft began operating in the two upstate cities without authorizations in April, and currently violates various laws.

The company operates "in open defiance" of state and local licensing and insurance laws, said Schneiderman. He's seeking a civil penalty and loss of the company's profits.

A call to Lyft's attorney wasn't initially returned.