Lyft, the San-Francisco based transportation network company, will be paying $300,000 to settle allegations that it violated state laws.
The state’s attorney general's office sued Lyft last summer for operating in the state without requiring its drivers to have commercial licenses or proper insurance.
As part of the settlement, Lyft has agreed to follow vehicle-for-hire laws in the state, Attorney General Eric Schneiderman's office said Thursday.
The company said in a statement that its drivers are ordinary people who agree to a background check and use their personal cars to pick up Lyft customers.
According to the state’s rule, Lyft cannot start providing services in that manner since the state requires the drivers to have a commercial license and insurance.