(KRON) – Journey-share service Lyft has sued the town of San Francisco for overcharging tens of millions in a span of 5 years, based on a report from Enterprise Insider.
Enterprise Insider stated Lyft filed the lawsuit within the California Superior Court docket in San Francisco. From 2019 to 2023, Lyft, which is headquartered in SF, says the corporate was “unfairly charged” $100 million from San Francisco.
The ride-share firm stated the tax calculation San Francisco used would not mirror Lyft’s agency’s enterprise mannequin. Enterprise Insider claims within the lawsuit submitting that Lyft stated the formulation SF makes use of is “distortive and will grossly overstate Lyft’s gross receipts attributable to Lyft’s business activities in the city.”
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Based on Enterprise Insider, the ride-share firm says it earnings from what drivers pay to Lyft, not what passengers pay to the drivers. Per Lyft’s web site, the corporate’s drivers make a minimum of 70% of what the passenger pays.
Lyft additionally cited, within the submitting, that the US Securities and Change Fee would not take into account driver’s charges as a part of Lyft’s income. The corporate additionally stated driver charges usually are not credited as earnings for earnings tax functions on a state or federal stage.
Lyft goals to be refunded for the overcharge, based on Enterprise Insider.
