Ridesharing company Lyft recently entered the Twin Cities market despite serious objections from Minneapolis city officials.

The San Francisco-based tech company allows almost anyone with a car to become a chauffeur by finding passengers using the Lyft smartphone application.

Lyft’s arrival follows Uber, another San Francisco ridesharing service. The Uber app connects passengers with professional freelance drivers, who typically drive town cars or luxury SUVs.

The Uber app also offers the option to hail an UberX car, which is typically driven by a non-professional driver like a Lyft car.

Minneapolis officials say that the Lyft violates city taxicab ordinances and have threatened to ticket and tow Lyft cars. Minneapolis has reportedly impounded several UberX cars already.

The Star Tribune reports that Lyft was able to launch its Minneapolis-based service with a two-week free service promotion that bypasses the city’s taxicab law. It is unclear what will happen after this two week promotion expires.

Lyft and Uber face challenges in other cities as well, mostly led by taxi companies who fear competition from unlicensed cab drivers.

Ridesharing services also raise complicated insurance-related issues.

For example, Uber recently denied insurance coverage when a San Francisco Uber driver ran over a family on New Year’s Eve, killing a 6-year-old girl. The company says that it was not required to provide coverage because the driver was between fares.

It is even less clear what happens when an UberX or Lyft driver gets into a crash. Insurance Journal points out that personal auto insurance is not intended to cover drivers using their cars for paid fares.

Lyft’s terms of service explicitly place the liability for any crash on a driver:

“Such Driver will be solely responsible for any and all liability which results from or is alleged as a result of the operation of the vehicle such Driver uses to transport Riders, including, but not limited to personal injuries, death and property damages.”

I have used Uber cab ever since the service launched in Minneapolis last year and I love it, despite sometimes being slapped with $50 fares between St. Paul and Minneapolis.

Although my wallet feels the pain of Uber’s high fares, I’ve only used the cheaper UberX service a handful of times.

I plan to stay away from UberX and Lyft until the regulatory and insurance issues are ironed out. Right now, both services are too much like hitching a ride with a sketchy, underinsured friend.

Dennis Jansen is Upsize Minnesota’s digital editor. Follow him at @DennisJansen.