Police say a Lincoln Town Car hit the woman as it turned off Third Avenue onto 42nd Street.
The car ended up crashing into the newsstand on that corner.
The 58-year-old victim, identified as Maria Jimenez, is in critical condition at Bellevue Hospital.
Jimenez was walking with her husband back to the Helmsley Hotel at the time.
The livery driver, 53-year-old Dave St. Bernard, was not charged criminally. He was, however, issued a summons for failing to yield to a pedestrian in the crosswalk.