Lyft is headed for New York and is set on challenging Uber for the top spot in the ride-sharing arena.
It makes sense to pick The Big Apple for a stand-off, but ironically the ride-sharing service is not intent on taking the fight to the center of the state. Instead, Lyft is going to be launching in Queens and Brooklyn. More than 500 individuals are already lined up to become part of the pink-mustached fleet, ranging from firefighters to teachers and even a spacesuit designer. They join others in the 65 other cities that Lyft is used in, such as Chicago and San Francisco.
The Taxi and Limousine Commission (TLC) isn't too thrilled about this though because these drivers don't have the necessary licenses it requires to operate in New York. Without a TLC license, these firefighters and teachers will be treated like illegal cabbies, putting them at risk of getting their vehicles seized and dealing with $600 in penalty fines. A second offense bumps up penalty fines to $800 while a third will further drive up that number to $1000.
Lyft isn't threatened by the TLC though, saying New York City regulations are not applicable to ride-sharing apps. TLC chief Meera Joshi reiterates, however, that every rider deserves the protection and security that the commission provides through the rules it has in place. TLC is also open to working with Lyft to iron out kinks before the company launches, much like how it has successfully done so with others in the past. The set regulations also prevent Uber from rolling out its service in New York.
While Lyft may not feel like holding hands with the TLC, it does not take lightly the security of New Yorkers. All personal vehicles part of the ride-sharing service have insurance coverage of up to $1 million and all drivers must also pass background checks and trainings aside from having a driving license from the state.
When Lyft launches in New York on Friday night, July 11, users can hail drivers within Queens and Brooklyn for trips up to 60 miles from the area. Like the usual, a ride will be cheaper than a taxi, costing about 30 percent less. Lyft makes money by taking a 20 percent commission from the suggested donation rate a passenger pays at the end of a trip. Lyft also hopes to offer free rides for two weeks to those new to the city. Uber counters with a 20 percent cut on its UberX rates.
Venturing into New York is "something we wanted to do for a long time, especially in the outer boroughs, building into a vision of creating a personal transit network at the lowest possible cost," says Lyft co-founder John Zimmer.
