A ride-sharing service that has rankled regulators at City Hall has started operating under a two-week promotion that does not — for now — violate the city's taxicab ordinances.
The city's business licensing office had warned it would ticket and impound any vehicles associated with Lyft, since they qualify as taxicabs. The California-based company essentially allows people to become chauffeurs of their own vehicles, using a smartphone app to find passengers.
But the service launched on Thursday by giving users two weeks of free service (up to $25 per ride). That temporarily bypasses the city's "for hire" taxicab definition.
Grant Wilson, the city's head of business licensing, said the city won't begin enforcement until the service begins charging customers. That gives Lyft two weeks to find a solution with the city.
The city is serious, though. Wilson said the city has already tagged and impounded three vehicles run by UberX, a similar service that launched in Minneapolis in January.
Lyft says the promotion isn't tailored to Minneapolis. Communications director Erin Simpson said by e-mail that the company has launched similar promotions in nearly 20 cities.
Similar debates are playing out in cities across the country as Lyft and UberX expand their operations into new areas — Lyft is already operating in more than 20 communities. Seattle recently imposed new limitations on the services, allowing each of the companies to have 150 vehicles on the road.
Meanwhile, the Taxicab, Limousine & Paratransit Association, a trade group, has launched a public-relations campaign to ward off these competing companies. Under the moniker "Who's driving you?" the group warns that the services lack adequate insurance and proper background checks for drivers.
