Lyft is suing town of San Francisco, claiming the metropolis unfairly charged the ride-hailing firm over $100 million in taxes, Bloomberg reviews. The lawsuit alleges that, over the course of 5 years, San Francisco unfairly labeled cash earned by Lyft drivers as firm income.
Within the criticism, Lyft maintains that its drivers are its prospects, not staff. “Accordingly, Lyft acknowledges income from rideshare as being comprised of charges paid to Lyft by drivers, not fees paid by riders to drivers,” the criticism reads.
The lawsuit is simply the newest chapter in a yearslong debate over how gig financial system apps ought to classify drivers. Final summer time, Lyft, Uber, and DoorDash notched a win after the California Supreme Courtroom upheld Proposition 22, which permits the businesses to categorise drivers as impartial contractors, which means the businesses shouldn’t have to offer drivers with full worker advantages.
