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Ride-hailing app Lyft launches operations in New Orleans

The U.S. Chamber of Commerce on Thursday sued the city of Seattle over a new law that allows drivers of ride-hailing companies such as Uber and Lyft to unionize over pay and working conditions. Drivers will begin offering rides in Orleans, Jefferson, Plaquemines, St. Bernard, St. Charles and St. Tammany parishes.

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The long-awaited bill to regulate ride-hailing services like Uber and Lyft is about to emerge from a state legislative committee. Boston police have started fingerprinting taxi drivers last month and want the same requirement for ride-hailing drivers. “We continue to share concerns raised by city officials that the ordinance threatens the privacy of drivers, conflicts with longstanding federal labor and antitrust law, and may undermine the flexibility that makes Lyft so attractive both to drivers and passengers”.

The results of this lawsuit might have heavy ramifications for how other states deal with Uber and Lyft drivers as well, making it all the more significant.

The attitude of New Orleans “seems to fit really well with the mission of the company”. When the City Council passed the new rules, representatives of Lyft argued against insurance requirements they imposed, saying the insurance industry needed time to develop products tailored to the ride-hailing market. But in a statement to Gambit, Masserman said, “By creating a regulatory framework for ridesharing that prioritizes public safety and consumer choice, New Orleans has demonstrated its commitment to welcoming innovation”.

The bill’s main sponsor, Councilman Mike O’Brien, had said he wanted to make sure workers had access to good-paying jobs.

The company made an announcement on its website.

The decals presumably would allow enforcement of the only grossly unfair part of the bill – prohibiting the services from picking up passengers at Logan Airport or the Boston Convention & Exhibition Center for the next five years at least.

After filing suit to stop Uber’s operations at the urging of traditional cab drivers, Jefferson Parish officials are now negotiating with the company while allowing it to operate.

San Francisco-based Uber and other services would be required under the plan to carry a minimum $1 million of insurance coverage on each vehicle.

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The reception Lyft will receive in the other suburban parishes is unclear, as Lyft is the first company to announce operations in those parishes.

Lyft launches in New Orleans