NEW YORK CITY — A Manhattan Supreme Court judge on Monday postponed ruling on a restraining order against ride-sharing app Lyft until at least the end of the week, after the company made a last-minute promise to alter its rules in order to satisfy the state and city.
As part of Lyft's agreement, which the city categorized as unofficial, the company promised to only work with licensed Taxi and Limousine Commission drivers out of eight licensed bases across the Brooklyn and Queens launch zone, a deal similar to that of competitor Uber.
"Although we believe we would win on the merits of a [restraining order] straight up, we are willing to work with the city," said Lyft attorney Alan Sclar.
Rather than issue the restraining order, Justice Kathryn E. Freed ordered that Lyft could not begin operation in New York City before coming to an agreement with regulators by Friday. Lyft is currently allowed to continue operating in Rochester and Buffalo, Freed said.
"If they've been operating thus far I'm not sure such an extraordinary decision as using a [restraining order] is appropriate," Freed said.
"I will expect Lyft not to launch in the city of New York, and I want all of you back here Friday morning."
The move comes just days after the state and city jointly filed the order against Lyft, arguing that the company's "volunteer" and "donation" models are just ways to skirt state and city regulations.
Through its app, Lyft users hail a "volunteer" driver and, once the ride ends, pay a "donation" instead of a fare, according to the company. Passengers know they're getting into a Lyft vehicle by the signature pink moustache on the front of the car.
Both the attorney general's office and the city's corporate counsel argued on Monday that the company was being disingenuous by marketing itself as a "ride-share" rather than a for-hire cab service.
"Lyft's position is rather astounding, even audacious," said Jane Aziza, head of the Consumer Frauds and Protection Bureau in the attorney general's office.
"Not only do they say how they get to operate, but they get to say when they get to operate."
The attorney general's office declined to comment. The city's Taxi and Limousine Commission did not respond to requests for comment.
A spokeswoman for Lyft said the deal was just a first step, and that the company would continue to push for a "peer-to-peer model" through legal measures in the future.
"We recognize and respect that Judge Freed wishes for all parties to work together on a path forward in a timely fashion," spokeswoman Katie Dally said.
"Based on today’s progress, we expect to be operating shortly in New York City and will continue working with the TLC, Attorney General and Department of Financial Services to come to a resolution that supports safe and innovative transportation options for New Yorkers."
