A new class action lawsuit alleges that Lyft underpays its drivers by deceiving workers with confusing payment and referral policies in violation of federal and California laws.
Lead plaintiff Fernando Villaseñor alleges in his class action lawsuit that Lyft short changes its drivers to gain a competitive edge on Uber and local taxi companies.
Villaseñor says that when he first started working as a Lyft driver, he earned about $1,800 per week. After his first two weeks on the job, Villaseñor says that his payment became noticeably less, from about $1,000 to $1,200 per week, less gas and mileage expenses.
In addition to confusing policies surrounding “prime time” pricing for new drivers, Lyft also allegedly started pulling rides from Villaseñor. In one instance, Villaseñor says that he had driven almost 80 miles for an airport pickup, only for it to be unexpectedly pulled from him. He claims that he had to drive home uncompensated for the 2.5 hour trip.
“Lyft attracted Plaintiff, as it attracts all drivers, by advertising, and in its Terms of Service agreement promising, drivers 80% of the fare, when in fact Lyft paid the driver far less; in one typical example from February 1, 2018, paying Plaintiff only 57% of the fare,” alleges the Lyft class action lawsuit.
Villaseñor also claims that Lyft deceives drivers by telling them they receive a different, lower fare than actually paid by the customer. The plaintiff says that he signed up to be a driver under the impression that Lyft would charge a 20 percent commission. He later discovered that Lyft was also charging a service fee it kept entirely to itself, in addition to the commission.
“Lyft may argue that there has been no misrepresentation and no fraud–that its additional service fees are under a separate contract with the rider –that the service fee was a charge to the rider only, under a rider contract that is entirely separate and distinct from its contract with the driver –and that this in no way decreases the driver’s net earnings,” acknowledges the Lyft driver class action lawsuit.
“This characterization is disingenuous and false because Lyft knows very well that its fares are limited in relation to taxi fares,” contends the Lyft class action lawsuit. “Standard fares were set at a level that would avoid exceeding taxi fares in all but the most extreme location (Manhattan, where average traffic speed is very slow and taxi fares are lower).”
The Lyft class action lawsuit points out the Lyft has experienced explosive growth based on these allegedly deceptive practices. Uber drivers, alleges the plaintiff, make nearly the equivalent to regular taxi drivers; however, Lyft drivers make much less.
In April of this year, Lyft reportedly attempted to limit its liability by raising fares and eliminating the commission, as well as misrepresenting the fare amount to Lyft drivers. But that damage has already been done to Lyft drivers, says the plaintiff.
“Lyft’s deceptive business acts and practices have unjustly enriched Lyft, Inc. in California at the expense of Plaintiff and its other drivers in California (the California Subclass) and across the Nation (the entire plaintiff Class),” alleges the Lyft driver class action lawsuit.
Villaseñor says that Lyft generated most of its wealth on the backs of underpaid Lyft drivers with deceptive pay practices.
The plaintiff is seeking damages and restitution for himself as his proposed nationwide Class and California subclass.
Villaseñor is represented by Larry A. Peluso of Peluso Law Group PC.
The Lyft Underpaid Driver Class Action Lawsuit is Villaseñor v. Lyft Inc., Case No. 3:18-cv-02769-JCS, in the U.S. District Court for the Northern District of California.
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24 thoughts onLyft Class Action Says Drivers Short-Changed by Deceptive Pay Practices
I would like to be added to the lyft lawsuit. I have been driving for Lyft for over 2 years almost 3 years actually and I know I’ve been getting ripped off I would like to join cuz I’m tired of them taking my money I don’t understand how they get more money than I get.
I have not been receiving the up front. Pay stated for the lyft driver. And it seems like the harder you work, the more money they take from you.
I have been driving with Lyft for a little over 6 years. Is this lawsuit still going on? This year they changed everything about our pay and now we don’t even get time pay while in rides and the mile pay foes cover all the miles to the pick up and the drop off. But the app gets to decide how much per miler we make. So the last 2 days I averaged $15 per hour and today I managed to get $13 per hour. I drove an XL truck so I spend $5 per hour in gas. But I’ve seen all the changes over the years and can see the changes when I get my 1099s lol the first year was great 45% to me and 55% to Lyft last year 32%to me and 68% to Lyft. And each year more went to Lyft. Last year all 8100 rides I gave paid $133,500 for the rides I made $44,000 from that. So they made 2x what I made. So yeah is this still active? Or is there a new lawsuit somewhere else?
i want to join this demand lot of weirds things happen when platmorm have to pay and they dont do it
I have been driving for Lyft now for a month and this is still happening. The deception is real. Myself and others were lead to believe that we would make $1500 our first month driving. Never did it say that our earnings would be deducted from the total $1500. Everything that was used to show that we were getting close was deceiving until I met the required number of drives and noticed that I was only paid $600 out of the $1500 but that was due to all I had earned.
Is this still in motion? What’s the status of this case? And if so how can I be added.
I would like more info on how to get on this case I worked for Lyft and had the worse experience
So did I!! Super disappointed on how deceiving they have been.
I’d like to be added to the LYFT lawsuit for driver pay shortages. Worked in VA, MD & DC.
Lyft is getting worse, I have now had 2 separate rides where I drove 18 miles for a pick up on one of them and 25 miles on the other. The 18 mile ride I get there and pick up, only the passenger says they need to go back inside the house and I wait, for over a hr for them to come back out, each time they tell me I am coming sorry. Finally, I decided I am not waiting any longer but I can’t cancel because I already showed them picked up. And it counts against drivers to cancel. So admin canceled the ride and I got paid $0.00 for all that time and miles wasted.
The 25 mile ride I get there to pick up, and the passenger had already been picked up by another Lyft driver. So I canceled with a no show on the passenger and again, got $0.00. Lyft needs to be held accountable for this ridiculousness!
This is still going on…. where is the class action on this? I am trying to take screenshots now that i noticed it last week. I drive part time and in a week i have been short changed $10 on one ride alone. They draw straight line distances to calculate our fare but the roads are not straight. Some are worse than others. i have complained over and over and no one will respond.