Uber Technologies Inc (UBER)

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Aside from antagonizing drivers, the move has potential implications for the ongoing legal debate about the employment status of rideshare drivers. Lyft and Uber maintain they’re merely intermediaries that facilitate transactions between drivers and riders, which makes drivers independent contractors. Some legal experts, politicians, and drivers dispute this interpretation of labor law and contend they are, in fact, employees misclassified as independent contractors.


The Legal Argument That Could Destroy Uber Is About To Be Tested
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Removing the driver’s ability to even know what the rider pays for each trip further highlights the disconnect between Lyft’s legal arguments and its business practices. Over the last few years, Uber and Lyft have gradually de-coupled what the rider pays from what the driver earns. Riders are quoted a price for a ride based on an opaque algorithmic calculation, while drivers are compensated based on a “rate card” system, which is a simple time-and-distance calculation (say, 80 cents per mile and 20 cents per minute). Drivers can also receive flat-rate bonuses for trips in high demand areas.