Uber, Lyft drivers declare price-fixing in lawsuit towards corporations

A gaggle of drivers for Uber Applied sciences Inc and Lyft Inc on Tuesday accused the businesses of unfairly controlling how a lot passengers are charged for rides in an antitrust lawsuit in California state court docket.

The lawsuit https://fingfx.thomsonreuters.com/gfx/legaldocs/klvykrnkmvg/Uber-Lyftpercent20Complaint.pdf in search of class motion standing in San Francisco Superior Court docket alleged violations of California antitrust regulation, and state regulation prohibiting unfair enterprise practices.

You are reading: Uber, Lyft drivers declare price-fixing in lawsuit towards corporations

The drivers claimed that in the event that they had been capable of supply decrease costs to the customers, it will present drivers with “essentially the most aggressive compensation.”

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“By stopping drivers from doing so, Uber and Lyft hurt competitors in each the labor market in addition to the buyer market,” the grievance alleged. “Prospects pay extra, and drivers earn much less.”

An Uber spokesperson mentioned in a press release that the “grievance misconstrues each the info 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.

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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 the direction of Justice and the Edelson plaintiffs’ agency.

“For a decade, Uber and Lyft have been making an attempt to have it each methods,” Rachel Dempsey of In the direction of Justice instructed Reuters. “They’re making an attempt to keep away from the duties of an employer, whereas additionally sustaining a degree of management over the transaction that’s inconsistent with the concept that 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. (Reporting by Mike Scarcella in Washington Modifying by Matthew Lewis)

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