Lyft says it's starting New York City ..

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Albany, N.Y. • The on-demand ride-sharing app Lyft says it is starting limited service in New York City after reaching agreement with state and city officials to resolve regulatory issues.

New York's attorney general and Department of Financial Services say the company agreed to operate "in full compliance" with existing laws and regulations, and that it will start its city service Friday night with commercial drivers only.

Lyft also says it will suspend operations in Buffalo and Rochester on Aug. 1 while resolving issues there with state authorities.

San Francisco-based Lyft's plan to enter the New York City market two weeks ago was halted after the state officials sued. They claimed the company operates as a traditional for-hire livery service that is subject to regulations, not a peer-to-peer transportation platform as claimed.

Lyft says it's starting New York City service