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Ride-sharing Lyft’s New York City plans postponed

MICHAEL VIRTANEN
Associated Press

ALBANY, N.Y. (AP) — The on-demand ride-sharing app Lyft postponed its scheduled Friday launch in New York City while a state judge will wait until next week to consider whether its planned operations violate state and local laws.

The state attorney general’s office and the Department of Financial Services sued only hours before San Francisco-based Lyft planned to enter the market. Their joint lawsuit said the company actually operates as a traditional for-hire livery service using mobile technology, not a peer-to-peer transportation platform as claimed.

The company operates “in open defiance” of state and local licensing and insurance laws, according to the suit filed in Manhattan. Authorities allege Lyft began operating in Buffalo and Rochester without authorizations in April and already violates various laws, another issue they expect to further argue Monday.

Justice Kathryn Freed told The Associated Press she agreed to consider Lyft’s response Monday afternoon provided the company not launch in the meantime.

Attorney General Eric Schneiderman and Department of Financial Services Superintendent Ben Lawsky are seeking a court order to stop the company’s New York service until the suit is resolved, plus a civil penalty and loss of profits.

“We pursued this action only after repeatedly offering to work with Lyft in order to ensure that its business practices complied with the law,” they said in a statement. “Instead of collaborating with the state to help square innovation with statute and protect the public … Lyft decided to move ahead and simply ignore state and local laws.”

A day earlier, the New York City Taxi & Limousine Commission posted a notice that, in light of Lyft’s announced plans to offer free rides in Brooklyn and Queens starting Friday evening, its so-called ride share service is unauthorized in the city, that it has not complied with the commission’s safety requirements and other licensing criteria “to verify the integrity and qualifications of the drivers or vehicles used.”

Company spokeswoman Katie Dally said Lyft will not launch its peer-to-peer model in New York City unless it complies with New York City Taxi and Limousine regulations. Company officials will meet with the city commission starting Monday “to work on a new version of Lyft that is fully licensed by the TLC, and we will launch immediately upon the TLC’s approval,” she said.

Commission Chair Meera Joshi said they’re gratified the company will be working with them on a service fully compliant with rules protecting public safety and consumer rights.

In April, the on-demand ride-sharing app, best known by the fuzzy pink mustaches on its cars, said it was launching its service in 24 new locations, nearly doubling the startup’s U.S. markets.

Meanwhile, its rival Uber agreed with Schneiderman’s office on Tuesday to limit prices during emergencies, natural disasters or other unusual market disruptions consistent with New York’s law against price gouging. Uber later said it was adopting that policy in its other markets nationally. Its rates rise and fall with demand. On Monday, Uber said it was temporarily cutting New York City prices in a bid to compete with taxis.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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