Car-hailing app Lyft will launch in New York this week without permission from the Taxi and Limousine Commission — setting off a battle with the city.
The startup, a competitor to the increasingly popular Uber, announced Tuesday it will deploy its cars — known for their fuzzy pink mustache decorations — in Brooklyn and Queens on Friday.
It’s offering new passengers two weeks of free rides. Uber, which is authorized by the city, has cut its prices by 20%, in part to stave off expected competition from Lyft.
City regulators have pushed Lyft to agree to TLC-required driver background checks, drug tests and regular inspections.
“We’re still hopeful that Lyft will accept our offer to help them do the right thing for New York City passengers as they should, but New Yorkers can rest assured that the TLC will do its job and take the actions necessary to protect them,”said TLC Chair Meera Joshi.
City sources said officials may seize Lyft cars that hit the streets without permission.
“Very, very simply, they want to come in and operate outside the law,” a city source said.
Lyft, which operates in more than 60 cities, says it’s responding to intense demand in New York and has its own safety protocols.
The company maintains that it is exempt from TLC regulations because it offers ride sharing, not taxi service.
Uber and other apps like Hailo and TaxiMagic abide by TLC rules and their drivers now face the same drug tests, background checks and inspections as yellow and green cab drivers.
But Lyft says it bars drivers with convictions for drunken driving or violent crime, and has insurance for $1 million per ride.
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