New York's attorney general has sued to block Lyft, the on-demand ride-sharing app, from operating in the Big Apple.
The lawsuit was filed Friday, hours before San Francisco-based Lyft planned to enter the New York City market. The suit says the company actually operates as a traditional for-hire livery service using mobile technology, not a peer-to-peer transportation platform as claimed.
Attorney General Eric Schneiderman says the company operates "in open defiance" of state and local licensing and insurance laws. He seeks a court order to stop its New York service until the suit is resolved, plus a civil penalty and loss of profits.
The suit says Lyft began operating in Buffalo and Rochester without authorizations in April and currently violates various laws.
A call to the company's attorney wasn't initially returned.
Lyft has been vying for a piece of the ride-share pie currently being gobbled up by Uber, whose entry into the New York City market in 2012 was beset by its own set of legal issues, like city rules that prohibit yellow taxis from prearranging rides with passengers.