Patt Johnson, and Andy Davis

Press Citizen

Iowa City at noon gained a second ride-sharing service, Lyft, despite a warning to the company from Iowa Department of Transportation officials that it may be operating illegally.

Lyft cannot provide its services in Iowa until a required registration has been completed, said Andrea Henry, a DOT spokeswoman.

"We have had contact with Lyft and they are working to get their registration and necessary paperwork together for submittal," Henry said Thursday morning.

Lyft has said there is no current process for obtaining registration. "We are continuing to work closely with the DOT," the company said.

Last year, the Iowa Legislature established new rules for ride-sharing companies. It requires liability insurance for vehicles, background checks for drivers and licensing expectations.

The rub is that administrative rules for the legislation have not been completed. Lyft could operate under provisional authority but still needs to supply the state with appropriate information, Henry said.

The change in state regulations led the Iowa City Council last month to repeal a taxicab ordinance amendment that defined traditional taxicab companies and transportation network companies like Uber and Lyft. The amendment, a product of months of discussion, codified local requirements and fees for ride-sharing businesses and paved the way for Uber's operation in the city.

"The state essentially took away our jurisdiction, but my understanding is that its requirements are pretty similar to our ordinance," said Simon Andrew, assistant to the Iowa City manager.

Andrew said any penalties for violating the state's requirements would be under the state's jurisdiction and the city would not play an enforcement role.

Lyft officials said they are working with the DOT to provide the necessary documents.

Lyft said it planned to begin operating in eight Iowa cities at noon Thursday in addition to Iowa City, including Cedar Rapids, Dubuque, Ames, Davenport, Des Moines, Sioux City and Waterloo.

Henry said it would be unlikely the DOT could approve a registration before that. "It would take a few hours to review and grant authority," Henry said.

To use the service, riders request transportation through the mobile Lyft app. Riders pay and rate the ride using their smartphones.

The company said it is launching service in 54 cities Thursday after adding 40 cities in January.

Lyft operates similarly to Uber. Uber launched in Iowa in 2014 and now has drivers in Des Moines, Ames, Cedar Rapids, Iowa City and the Quad Cities.

Uber faced legal questions and hurdles — often from city and state officials or traditional taxi companies — in many markets across the country.

Reach Andy Davis at 319-887-5404 or at aldavis@press-citizen.com, and follow him on Twitter as @BylineAndyDavis.