Lyft is suing the city of San Francisco; The city is suing a ride-hailing company for over $100 million in taxes.Bloomberg reported. The lawsuit alleges that San Francisco illegally labeled money received by Lyft drivers as company revenue over a five-year period.
In the complaint, Lyft insists its drivers are its customers, not employees. “Accordingly, Lyft recognizes rideshare revenue as fees paid by drivers to Lyft, not fees paid by drivers to drivers,” the complaint states.
The lawsuit is just the latest chapter in a long-running dispute over how gig economy application drivers should be classified. Last summer, Lyft; Uber and DoorDash The California Supreme Court won after upholding Proposition 22.It allows companies to classify drivers as independent contractors, so companies are not required to pay drivers full employee benefits.