A Lyft car
A Lyft car ()

The on-demand ride-sharing app Lyft announced it would start offering limited service in New York City Friday night after resolving regulatory issues that prompted a lawsuit by the state.

New York Attorney General Eric Schneiderman and Department of Financial Services Superintendent Benjamin Lawsky said Lyft agreed to operate “in full compliance” with existing laws and regulations, and that it will start the new service with commercial drivers only.

Company spokeswoman Katie Dally said Lyft would expand its service in the coming weeks.

The New York City Taxi & Limousine Commission had posted a notice two weeks ago, in advance of the company’s initial planned startup in Brooklyn and Queens, that its ride share service at that time had not complied with the commission’s safety requirements and other licensing criteria to verify qualifications of its drivers and vehicles.

San Francisco-based Lyft’s plan to bring its pink-mustachioed car service to the New York City market was halted after the state officials sued, claiming the company operates as a for-hire livery service using mobile technology that is subject to regulations, not a peer-to-peer transportation platform.

“We will continue to work with Lyft so that any future business it undertakes meets that standard and protects consumer safety,” Schneiderman and Lawsky said in a joint statement.

The taxi commission did not immediately comment on the agreement Friday.

Lyft will suspend operations in Buffalo and Rochester Aug. 1 while resolving regulatory issues there.

Dally said that Lyft will work with authorities “to align New York State’s insurance laws and regulations with emerging technologies of the 21st century.”