Lyft to Pay $300,000 to Settle San-Francisco Case
Lyft to Pay $300,000 to Settle San-Francisco Case

Lyft, the San-Francisco based transportation network company, will be paying $300,000 to settle allegations that it violated state laws.

The state’s attorney general's office sued Lyft last summer for operating in the state without requiring its drivers to have commercial licenses or proper insurance.

As part of the settlement, Lyft has agreed to follow vehicle-for-hire laws in the state, Attorney General Eric Schneiderman's office said Thursday.

The company said in a statement that its drivers are ordinary people who agree to a background check and use their personal cars to pick up Lyft customers.

According to the state’s rule, Lyft cannot start providing services in that manner since the state requires the drivers to have a commercial license and insurance.

Lyft drivers in New York currently have commercial licenses, the company said.

Schneiderman said in a statement that he has always been in favor to fostering an innovative and competitive environment in which both new and existing companies can flourish in our great state.

“Today's agreement enables Lyft to grow and prosper within the bounds of state and local regulations, while the penalties imposed send the message that companies that attempt to skirt the law will be held accountable”, he added.

Founded three years ago, Lyft pairs passengers with drivers using a smartphone app. It operates in more than 60 cities in the US and has raised $1 billion in venture funding, valuing it at $2.5 billion.

A Lyft spokeswoman said the company and the state mutually agreement does not require any changes in Lyft’s existing service in New York.

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