With service challenged in court, Lyft trying to expand ride-sharing app to New York City

With its bid to enter the New York City market challenged in court, the on-demand ride-sharing app Lyft says it's trying to resolve issues with authorities about insurance and operations and expects to start soon.

The state suit was filed Friday, alleging the company actually operates as a traditional for-hire livery service using mobile technology that is subject to regulations, not a peer-to-peer transportation platform as claimed.

A state judge has asked all sides to return to court Friday morning unless they settle first.

Lyft already operates in 65 cities. It says it has agreed to begin in New York City with Taxi and Limousine Commission licensed drivers as a first step while pushing for a peer-to-peer model through the proper channels.

The attorney general's office is declining comment.