Despite being chastised by the New York City Taxi and Limousine Commission (TLC), which declared quasi-taxi firm Lyft as an “unauthorized” firm, the startup says it will go ahead with its scheduled Friday evening launch.

Lyft is a San Francisco-based startup that allows its users to book rides from drivers via its smartphone app, effectively acting just like a taxi service.

In a statement sent to Ars on Thursday, the commission said that the firm had “not complied with TLC’s safety requirements and other licensing criteria to verify the integrity and qualifications of the drivers or vehicles used in their service, and Lyft does not hold a license to dispatch cars to pick up passengers.”

The TLC also noted that “drivers who sign-up with Lyft are at risk of losing their vehicles to TLC enforcement action, as well as being subject to fines of up to $2,000 upon conviction for unlicensed activity.”

Presuming that Lyft drivers go forward, they would not have traditional TLC taxi medallions, and would be effectively considered like the city's myriad of unauthorized taxis, sometimes known as "gypsy cabs."

In a statement, Katie Daily, Lyft's spokeswoman, told Ars that the company was still moving forward despite the commission's actions.

"Where we differ with the TLC is that we do not believe its licensing and base station rules apply to the Lyft ridesharing model," she's said. "We put safety first, and we have made this clear in our conversations with the TLC."

Earlier this week, Lyft posted on its blog that all of its drivers have gone through a screening process that “is more stringent than what’s required for NYC taxis,” which includes a $1 million worth of insurance.

Lyft, along with its competitors, including Sidecar and Uber, have faced regulatory hurdles nationwide. Earlier this year, as Lyft has expanded in various cities across America, it has faced fines and citations from numerous jurisdictions for not complying with local taxi law.

In September 2013, the California Public Utilities Commission, the agency responsible for regulating taxis in the Golden State, created an entirely new class of transit firms, known as “Transportation Networked Companies" (TNCs). This move legitimized Lyft's operations in California months before New York stymied the startup.

In the same statement, the TLC said that it has worked with other taxis and livery companies, including Uber, Hailo, TaxiMagic and others, and would be willing to accommodate Lyft as well if it comported with the commission's regulations.