Lyft Agrees to Temporary Halt of Rideshare Service in Kansas City

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Ridesharing company Lyft will temporarily stop operating in Kansas City, Mo. while it negotiates with the city over ways to allow it to permanently conduct business in the city.

Lyft officials said that the drivers will stop working for up to 60 days under an agreement that requires a federal judge’s approval. It also temporarily stops a federal lawsuit scheduled to go to trial in December, The Kansas City Star reported.

Lyft uses a smartphone app to link passengers with part-time drivers in their own vehicles and charges a suggested donation rather than a set fare. The company has been at odds with city officials since arriving in Kansas City in May. The city contends that the company should follow regulations governing taxis, but Lyft argues it is a different business than taxis and should not have to follow those rules.

“This is a ray of light where up to now we’ve had storm clouds,” said David Mack, spokesman for Lyft, which is based in San Francisco. He acknowledged the moratorium will financially hurt “hundreds of drivers” in Kansas City.

The city sued the company in federal court, but a judge rejected a request for a temporary restraining order preventing Lyft from operating this summer. The judge allowed the company to keep operating, but scheduled a trial on the broader legal issues for December.

Lyft spokeswoman Chelsea Wilson said the company is confident it can work out its differences with Kansas City, just as it has in more than 60 other communities where it operates.

Kansas City spokesman Chris Hernandez also applauded the agreement. He said a Lyft competitor, UberX, has completed the process to get fully licensed and insured, and its drivers are now getting permits.

Since Lyft and UberX started operating in Kansas City, the city has ticketed numerous drivers for operating without a permit. Those tickets are on hold pending the outcome of the lawsuit.