Lyft is suing town of San Francisco, claiming town unfairly charged the ride-hailing firm over $100 million in taxes, Bloomberg stories. The lawsuit alleges that, over the course of 5 years, San Francisco unfairly labeled cash earned by Lyft drivers as firm income.
In the grievance, Lyft maintains that its drivers are its clients, not workers. “Accordingly, Lyft acknowledges income from rideshare as being comprised of charges paid to Lyft by drivers, not fees paid by riders to drivers,” the grievance reads.
The lawsuit is simply the newest chapter in a yearslong debate over how gig financial system apps ought to classify drivers. Last summer time, Lyft, Uber, and DoorDash notched a win after the California Supreme Court upheld Proposition 22, which permits the businesses to categorise drivers as unbiased contractors, that means the businesses do not need to supply drivers with full worker advantages.
