Three-year-old peer-to-peer car rental service Relay Rides has run into a rough ride in New York, accused by the state's Financial Services Department of "repeated false advertising and violations of insurance law."

The two sides present different takes on what's happened – a state official makes it sound like Relay Rides willfully misled consumers when it told them "that they would not be liable for out-of-pocket expenses in the event that their car was stolen or involved in an accident," because the company's insurance isn't approved by New York. Relay Rides, which operates nationwide, has said that it works to make sure it abides by state laws but learned from the Financial Services Department that there was "noncompliance with certain unique aspects of New York insurance law."

While the quarrel is sorted out, Relay Rides has said it will discontinue the service in New York but that any existing reservations will be honored.


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  • 14 Comments
      2 wheeled menace
      • 1 Year Ago
      New York is probablty the worst state for business in the entire country. Glad they are going galt. NY doesn't deserve the tax income.
      Sasha
      • 1 Year Ago
      What a ******* joke. This isn't about protecting consumers (from an awesome service), it's about protecting the entrenched interests in the taxi and rental industries. Same as the dealer going after Tesla for selling a superior product, or DC going after Uber for providing superior taxi services. It's screwing the consumer in the name of protecting them. New York City used to be the home of Capitalism, now it's the home of corrupt Cronyism, a dark harbinger for the whole country. Lord protect us from these parasites who will drag the whole economy into the swamp to save a haircut from their bottom line.
        Sasha
        • 1 Year Ago
        @Sasha
        Gearheads should be particularly pissed off about this; I know that I love nothing more than getting to drive a wide variety of cars, just to see what they are really like. Rentals offer a wide range from Tauruses to Focuses, while buying and selling cars is a hassle that takes all your time. This is the PERFECT recipe for gearheads to get to experience a wide variety of cars in a way that is affordable in terms of time and money, and we better not let corrupt politicians take away yet another good thing.
        Stephan Lahm
        • 1 Year Ago
        @Sasha
        Where isn't there cronyism? It's the same in New York as anywhere else. Until we get money out of politics...
        d1anaw
        • 1 Year Ago
        @Sasha
        I was wondering how much the taxi industry in NY was behind this.
      knightrider_6
      • 1 Year Ago
      These are interesting times indeed New York bans driving cars without proper insurance Virginia bans abortion clinics without awnings at their entrance Texas bans teaching critical thinking skills Arizona bans colored people
      OG
      • 1 Year Ago
      As long as they use cars like this. http://m.youtube.com/#/notforeveryonefilms?uid=hEza5VvMOEOg_fZYhM_prw&desktop_uri=%2Fnotforeveryonefilms
      knightrider_6
      • 1 Year Ago
      They should be glad it didn't turn into an expensive lawsuit.
      Bernie
      • 1 Year Ago
      I read more about this. Finally somthing that can make our lives better and smarter. So what is the problem with NYS? I live in NYS and want some one in office in this state to explain there problem to Me, and in plain english. Well, I am waiting. Bernie.. Bernie1957@aol.com.
        ED
        • 1 Year Ago
        @Bernie
        If the state can't gouge the company for money, then they close you down.
      RC
      • 1 Year Ago
      Folks who like these services (Uber, RelayRides) should speak with their wallets. Don't type cab drivers or just avoid them all together.
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