Lyft says the city of San Francisco overcharged it $100 million
Lyft is suing the city of San Francisco, claiming… The city unfairly charged the ride-hailing company more than $100 million in taxesBloomberg reports. The lawsuit alleges that San Francisco, over a five-year period, unfairly classified money earned by Lyft drivers as company revenue.
In the complaint, Lyft asserts that its drivers are its customers, not employees. “Accordingly, Lyft acknowledges that revenue from ridesharing consists of fees paid to Lyft by drivers, not fees paid by passengers to drivers,” the complaint said.
The lawsuit is just the latest chapter in a years-long debate over how gig economy apps should classify drivers. Last summer, Lyft, Uber and DoorDash He scored a victory after the California Supreme Court upheld Proposition 22which allows companies to classify drivers as independent contractors, meaning companies don’t have to provide drivers with full employee benefits.