Lyft to Suspend Operations Here

Published 07/25 2014 01:02PM

Updated 07/25 2014 11:32PM

Lyft is suspending all operations in Rochester and Buffalo by August 1, per an agreement with the state.

Attorney General Eric Schneiderman sued Lyft, alleging the company was a taxi service that did not follow laws regulating the industry. Lyft maintained it's a ride-sharing service that links passengers and drivers through a smartphone app. Passengers pay a suggested "donation."

In a statement posted to its website, Lyft said, "Lyft will pause operations in Buffalo and Rochester by August 1st, while we work with the Attorney General’s Office and Department of Financial Services to align New York State’s insurance laws and regulations with emerging technologies of the 21st century...Now that we’ve outlined a path forward with state leaders, we will work together to make peer-to-peer policy progress as we have in numerous other cities and states."

Meanwhile, Lyft will launch today in New York City, where it has reached an agreement to operate.

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