After facing legal action from the state Attorney General's office, the Taxi & Limousine Commission and the State Department of Finances, ride-share service Lyft has agreed to postpone its launch in the city. They'll be meeting with TLC officials on Monday to discuss adapting the program to comply with city laws, so that should be a good time.

Though Lyft was set to launch in Brooklyn and Queens yesterday evening, the TLC and state officials took issue with the company's failure to adhere to city taxicab laws. Lyft drivers aren't licensed by the TLC, for instance, and don't necessarily have to undergo the same stringent background checks as regular cab drivers. Officials were also concerned about the $1 million-per-car insurance deal Lyft boasted—Lyft drivers use their own cars, and there was concern this would set a too-high precedent for private cars citywide.

So, no Lyft for now. "We agreed in New York State Supreme Court to put off the launch of Lyft's peer-to-peer model in New York City and we will not proceed with this model unless it complies with New York City Taxi and Limousine regulations," a company spokesperson told us yesterday. "We will meet with the TLC beginning Monday to work on a new version of Lyft that is fully-licensed by the TLC, and we will launch immediately upon the TLC's approval."

No word on if/when Lyft will finally get going here, but the state seems pretty happy. "We are hopeful that Lyft will now recognize that it has to play by the same set of rules as everyone else," AG Eric Schneiderman and Department of Financial Services Superintendent Benjamin Lawsky said in a joint statement today. Meanwhile, the Times has an interesting piece today about how companies like Lyft and e-hail application Uber are challenging the taxi cab status quo, offering lower prices and on-demand services:

The market for rides will be cheaper, with more availability of cars, than it ever has been before, which should make it easier to use these services for routine transportation. Prices will spike fairly routinely when there is a great deal of demand, but with limitations on those price spikes during emergencies. And whether from Lyft, other new entrants like Sidecar, or even from traditional taxi companies improving their pricing to compete, it is clear that this is going to be a brutally competitive arena.