Uber and Lyft Legal Issues

Drivers at Uber Technologies Inc. and Lyft Inc. have long complained about issues ranging from platform fees to employment status. When the quarantine decimated the demand for rides, many drivers quit, finding that unemployment benefits exceeded driving wages. In other words, things will continue as usual for Uber and Lyft as their lawyers engage in a lengthy legal battle over the judge`s decision. You can bet companies will do everything they can to make sure they don`t have to add more driver costs to their balance sheets. Uber and Lyft refer to their drivers as independent contractors rather than employees, the centerpiece of numerous legal challenges in recent years in state and federal courts across the country. Lyft said in a statement to Bloomberg Law that Llewellyn, who previously led the litigation team, „has guided the company through the many legal challenges associated with growing from a small, privately held San Francisco company to a publicly traded company with a presence in all fifty states and Canada.“ Llewellyn, Lyft`s new general counsel, joined the company in 2014 as senior litigation counsel. Prior to this role, in which Llewellyn was Lyft`s first in-house litigator, she was a partner at Winston & Strawn in San Francisco. Lyft Inc. has named a new chief legal officer as ride-sharing company and rival Uber Technologies Inc. continue to face disputes over driver classification. „As one of the company`s most employed lawyers, Lindsay has extensive experience advising Lyft on a variety of innovative and high-profile legal issues while navigating the intersection between the company`s legal, policy, and brand goals,“ Lyft said in a statement.

A number of promising ride-hailing apps are taking aim at Uber and Lyft, promising to treat drivers better. The securities filings show that Sverchek has sold nearly $3.3 million worth of Lyft stock this year. She received additional restricted stock units in the company in her new role as president of commercial affairs, according to Lyft. He also traveled to Beijing to try to smooth things out, people familiar with his activities said. It was too little, too late, officials said. Mr. Ma deviated too far from his lane. His ambition and outspokenness, qualities that have found great success among many in China, would no longer be tolerated under the tight grip of Xi and the ruling party. Some of these stories require a subscription to access.

Thank you for supporting our journalism. Early in trading Monday, investors in Uber and Lyft expressed concern about the impact of the decision, pushing shares of both companies lower, CNBC noted. Later in the day, however, Lyft shares rose 2.7% to $47.14, while Uber gained 2.7% to $41, suggesting investors saw little pain in the short term. One reason the judge`s decision on the bill, which passed in November as part of the Proposition 22 vote initiative, was that it prevented the state legislature from setting labor standards. For example, if officials wanted workers on demand to be entitled to workers` compensation, they would be paralyzed, the judge said. As expected, the Protect App-Based Drivers & Services Coalition — an industry group that supports Uber, Lyft and other concert companies — criticized the judge`s decision, calling it an „outrageous decision.“ The group noted that it would „immediately appeal“ and that „all provisions of Proposition 22 will remain in effect until the appeal process is completed.“ Sverchek`s new role as Lyft`s first president of commercial affairs will expand her responsibilities, the company said. Sverchek will unify Lyft`s global and administrative functions and „focus on enterprise-wide initiatives and increase the company`s operational efficiency,“ Lyft said. Sverchek began his career as a partner at the law firm Gunderson Dettmer Stough Villeneuve Franklin & Hachigian. She helped make Lyft public in 2019. Wilson Sonsini Goodrich & Rosati advised Lyft on its IPO.

This Tuesday, Fortune will unveil its latest vertical and monthly newsletter entitled The Modern Board. With the subscription, you stay up to date on the new corporate governance rules. Register here! Lyft, for its part, recently took a small step this month by becoming profitable — as long as it ignores a long list of one-time expenses. In fact, however, the company is still bleeding money, reporting a net loss of $251.9 million last quarter. Meanwhile, Uber reported a loss of $509 million before interest, taxes and expenses last quarter, while analysts expected a loss of $325 million, according to Bloomberg News. In September, Sverchek and Lyft made headlines for teaming up with arch-rival Uber to take a stand against a new restrictive anti-abortion law in Texas. Confronting China`s technical repression. Executives at Chinese e-commerce company JD .com t expect Beijing`s crackdown on China`s tech industry to hurt the company`s business. JD.com added a record 32 million users last quarter, while profits beat analysts` expectations.

The Chinese government`s increased scrutiny of domestic technologies has hit JD.com rival Alibaba particularly hard, which was fined $2.5 million in April for anti-competitive concerns. A Lyft representative did not immediately respond to messages seeking comment. The drivers are represented by the Denver-based law firm Towards Justice and Edelson`s plaintiffs` office. OpenTable hires Clear to verify vaccination status in restaurants By Rachel King On Friday, a California Superior Court judge ruled that a California law that allows companies to classify so-called gig workers as contractors is unconstitutional. The decision, if upheld, is a major setback for ride-hailing companies, as it would require them to treat drivers like employees — meaning companies would have to spend a lot more on benefits. Visa just bought a CryptoPunk NFT for $150,000 from Marco Quiroz-Gutierrez [1/2]A sign marks a meeting place for Lyft and Uber users at San Diego State University in San Diego, California, U.S., May 13, 2020. Branson SPAC again. British billionaire Richard Branson is taking another of his companies public through a merger with a blank check company. Virgin Orbit has reached an agreement with NextGen Acquisition Corp. II that, if concluded, would allow the spin-off of Virgin Galactic to become a public company listed on Nasdaq.