The lawsuit in search of class motion standing in San Francisco Superior Courtroom alleged violations of California antitrust regulation, and state regulation prohibiting unfair enterprise practices.
The drivers claimed that in the event that they have been capable of provide decrease costs to the shoppers, it could present drivers with “essentially the most aggressive compensation.”
“By stopping drivers from doing so, Uber and Lyft hurt competitors in each the labor market in addition to the buyer market,” the criticism alleged. “Prospects pay extra, and drivers earn much less.”
An Uber spokesperson mentioned in a press release that the “criticism misconstrues each the details and the relevant regulation and we intend to defend ourselves accordingly.”
A consultant from Lyft didn’t instantly reply to messages in search of remark.
Uber and Lyft label their drivers unbiased contractors and never staff, the centerpiece of many authorized challenges in recent times in state and federal courts throughout the nation.
The plaintiff drivers within the new lawsuit contend Uber and Lyft “deprive these drivers of financial independence” by fixing the costs that drivers should cost.
The drivers are represented by Denver-based In direction of Justice and the Edelson plaintiffs’ agency.
“For a decade, Uber and Lyft have been attempting to have it each methods,” Rachel Dempsey of In direction of Justice advised Reuters. “They’re attempting to keep away from the duties of an employer, whereas additionally sustaining a stage of management over the transaction that’s inconsistent with the concept these drivers are unbiased contractors.”
The drivers named as plaintiffs within the lawsuit beforehand opted out of arbitration agreements with Uber and Lyft, permitting them to contest employment-related issues in court docket.