Squash Peak Fare Case Plaintiffs vs. Lyft. Drivers Win $2 million

(Bick Bhangoo) #1

Its not an Uber update, it's a Lyft one, and yes, guess what, they were caught lying too.

In the case of Zamora v. Lyft, N.D. Cal., No. 3:16-cv-02558, motion for preliminary settlement approval 3/28/18.

What happened here? Simple, the Lyft drivers claimed that Lyft told their customers that during the high-volume hours, all the "Prime Time" premiums would go to the drivers. However, Lyft did not give "all" the income to the drivers; they took their standard 20% cut from this income.

Download Case File :arrow_down:

The outcome of the settlement is that Lyft will refund the drivers $2 million as well as stop making claims that they do not intend to keep. One of the lawyers representing the drivers, in this case, is Jahan Sagafi, and he told the press that "We're very pleased that Lyft is compensating drivers for these claims, and that it stopped using the 'for the driver' language we challenged as deceptive."

It's no wonder that Lyft agreed to settle since this comes a few months after Uber agreed to settle a similar case in NYC for $3 million.

It seems that legal battles are a going concern for rideshare companies, Uber and Lyft, especially when the issue of driver's income and employment status is constantly under fire. The most impressive battle around this issue is currently being handled in the court of appeals in Seattle, where Uber drivers were given a right to unionize by the City of Seattle. The outcome of this trial will set the standard for the future. It was only last year that Lyft paid $27 million in settlement to drivers so that a judge might not decide to classify drivers as employees.

My take:

If Uber and Lyft would create working payment model that supports their profitability as well as a good income for their drivers, most of the court cases would not just disappear; they would not arise in the first place. However, since these companies are in a constant price war with a taxi driver, they have been trying to eliminate their rivals by pricing them out of business. This is the main reason why Uber and Lyft have been posting massive losses for the past 6 years. Once real pricing comes back, and passengers pay what is expected of them to pay, then drivers will earn what they should earn, and the 20-25% commission that Uber takes won't be challenged.

(Ian) #2

Isn’t there a club for Uber plaintiffs? Maybe we should consolidate them with a Lyft one too and make a Rideshare Plaintiffs Club, that offers advice and help to people tat want to sue Uber and Lyft and others,