Uber, Lyft drivers claim price-fixing in lawsuit against companies
Reuters
Published Jun 21, 2022 05:24PM ET
By Mike Scarcella
(Reuters) - A group of drivers for Uber Technologies (NYSE:UBER) Inc and Lyft Inc (NASDAQ:LYFT) on Tuesday accused the companies of unfairly controlling how much passengers are charged for rides in an antitrust lawsuit in California state court.
The lawsuit https://fingfx.thomsonreuters.com/gfx/legaldocs/klvykrnkmvg/Uber-Lyft%20Complaint.pdf seeking class action status in San Francisco Superior Court alleged violations of California antitrust law, and state law prohibiting unfair business practices.
The drivers claimed that if they were able to offer lower prices to the consumers, it would provide drivers with "the most competitive compensation."
"By preventing drivers from doing so, Uber and Lyft harm competition in both the labor market as well as the consumer market," the complaint alleged. "Customers pay more, and drivers earn less."
An Uber spokesperson said in a statement that the "complaint misconstrues both the facts and the applicable law and we intend to defend ourselves accordingly."
A representative from Lyft did not immediately respond to messages seeking comment.
Uber and Lyft label their drivers independent contractors and not employees, the centerpiece of many legal challenges in recent years in state and federal courts across the country.
The plaintiff drivers in the new lawsuit contend Uber and Lyft "deprive those drivers of economic independence" by fixing the prices that drivers must charge.
The drivers are represented by Denver-based Towards Justice and the Edelson plaintiffs' firm.
“For a decade, Uber and Lyft have been trying to have it both ways," Rachel Dempsey of Towards Justice told Reuters. "They're trying to avoid the responsibilities of an employer, while also maintaining a level of control over the transaction that is inconsistent with the idea that these drivers are independent contractors."
The drivers named as plaintiffs in the lawsuit previously opted out of arbitration agreements with Uber and Lyft, allowing them to contest employment-related matters in court.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.