Lyft claims San Francisco charged it $100 million in taxes

Lyft is suing the town of San Francisco, claiming that the city unfairly charged the ride-sharing company more than $100 million in taxesexperiences Bloomberg. The lawsuit alleges that over a five-year interval, San Francisco unfairly characterised cash earned by Lyft drivers as firm earnings.

Within the criticism, Lyft contends that its drivers are its clients, not its staff. “Accordingly, Lyft acknowledges rideshare income as consisting of charges paid to Lyft by drivers, and never charges paid by passengers to drivers,” the criticism states.

The lawsuit is simply the most recent chapter in a years-long debate over how gig financial system apps ought to classify drivers. Final summer season, Lyft, Uber and DoorDash scored a victory after the California Supreme Court upheld Proposition 22which permits firms to categorise drivers as unbiased contractors, that means firms should not required to supply drivers full advantages.