Lyft is a San Francisco-based ride-sharing business. Through its"Lyft Platform" mobile application, Lyft allows someone looking forauto transportation to request a ride. All people registered withthe app as "drivers" who are nearby the requesting party's locationat the time are notified through the app of the request. The firstdriver to accept the request is matched with the requesting partyand proceeds to pick up the requesting party and drive him/her tothe requested destination.
People who sign up as Drivers provide their availability to Lyftthrough the app; Drivers are expected to accept all incomingrequests during that available time unless already fulfillinganother rider's request. Lyft prohibits Drivers from transportingriders more than 60 miles from the origin of the ride. Riders pay afee for the ride to Lyft directly through their credit card; Ridersmay choose to provide a tip to the Driver, which is processedthrough the Lyft app. Lyfttakes 20% of all gratuity payments as anadministrative fee, and Drivers are not permitted to ask for suchpayments. Pursuant to Lyft's Terms of Service, Lyftis permitted toterminate Drivers for any reason and at any time; Lyft Drivers arerequired to place a large pink mustache on the front of theirvehicles when transporting a rider; Drivers are not permitted tospeak with Riders about Lyft fees or to set their own rates;Drivers go through a 1 hour training course; and Lyft reserves theright to examine Drivers' vehicles for cleanliness andappearance.
Based on what we learned in these chapters, what possible legalrisks does Lyft have through this relationship? Can you make anargument that Lyft Drivers are "employees" of Lyft? This issue hasbeen litigated in a few courts, so you are welcome to look uprecent news articles or read the court opinions (because you knowhow to do that now!); please still try to relate back to the basicsof this week's reading or lecture, and definitely cite all sourcesused.
