RelayRides Forced to Suspend Car-Sharing Service in New York
The state of New York is particularly tough on using technology to change existing systems.
New York is cracking down on Airbnb peer-to-peer home rentals, New York City is doing its darnedest to snarl e-hail for taxicabs and now car-sharing service RelayRides is pulling out of the state amid scrutiny of its handling of insurance.
San Francisco-based RelayRides, which said earlier this week it was acquiring its California competitor Wheelz, is suspending peer-to-peer car rental service in New York effective immediately, though it will honor existing reservations, CEO Andre Haddad disclosed in a blog post today.
That comes after a cease-and-desist order from the New York Department of Financial Services today that charged that RelayRides’ million-dollar insurance policy could still leave users personally liable in the case of an accident.
Haddad said his company was in discussion with the department about how it could comply and resume service.