Regulations

Uber Could Fare Much Worse Than Lyft On Driver Status

Posted on January 27, 2016

Lyft will not have to reclassify its drivers as employees after reaching a settlement yesterday, in which it agreed to pay $12.25 million extra in compensation and benefits. Uber is facing a similar lawsuit from its drivers, but a quirk in the litigation could make the outcome way worse for the world's biggest transportation network company (TNC).

Attorney Shannon Liss-Riordan estimates that the $12.25 million Lyft agreed to pay its drivers was just one-fifth of what they could have won had the case gone to trial on a classwide basis. Does that mean Uber will have to pay its drivers $61.25 million to settle its case? Not at all. For one, Uber is a much larger company than Lyft with many more drivers, so the assumption is the penalty would be exponentially larger if Uber tries to settle. Also, Liss-Riordan has made it clear that what she is seeking is not so much financial redress, but the redefinition of how the on-demand economy operates.

TheVerge.com article here

Related Topics: California operators, driver pay, employee wages, lawsuits, legal issues, Lyft, Shannon Liss-Riordan, TNCs, Uber, wage lawsuits

Comments ( 2 )
  • anthony

     | about 3 years ago

    The ny guber price fares.....lol Lowering the rates will cause volume in sales......sure

  • See all comments
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