Judge Gives Lyft Something to Worry About Ahead of Its IPO

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Judge Gives Lyft Something to Worry About Ahead of Its IPO
Members of the Fair Drivers Guild
Photo: Drew Angerer (Getty)

Befriend in December, New York Metropolis accredited the nation’s very first minimal wage pay floor for app-basically based drivers—a ancient victory Lyft undercut practically without prolong by appealing its implementation in courtroom. This present day, drivers received more like minded news when a spend denied Lyft’s motion for an injunction that would block the minimal wage for its drivers.

The pay floor itself would scheme a rate of $17.22 per hour (after bills) for drivers in a single of Lyft’s supreme markets. For its portion, Lyft argues the requirement to shell out a residing wage would tip the scales in desire of its rival, Uber, which is currently both bigger and richer. “It’s no secret that Uber has tried to position us out of industry in the previous,” the corporate wrote earlier than its initial filing. “They’ve failed continuously, and the TLC [Taxi and Limousine Commission] ought to still now not aid them of their efforts.”

“We are happy the spend denied Lyft’s motion to dam the wage protection principles for now,” Lyft driver and Fair Drivers Guild member Tina Raveneau wrote in a assertion to press this day. “Eighty thousand New Yorkers again as decent drivers for apps cherish Lyft and we deserve the protection and the glory of a livable minimal wage.”

The spend is anticipated to bring a written assertion all around the next 30 days—timing which is never up to splendid for Lyft. The company filed its initial public offering on the starting assign of this month and now, as the corporate begins to courtroom merchants for its nearly 30.8 million shares and seeks a valuation between $21 and $23 billion, an contaminated result in a single of its supreme markets could perchance doubtlessly hurt its stock sign, which is quiz to land spherical $65 every.

“We give a enhance to the New York Metropolis Council’s minimal earnings aim, but oppose the TLC’s state principles because they truly hurt incomes opportunities for drivers, and present advantages to positive corporations over others,” a Lyft spokesperson wrote to Gizmodo in a assertion. “We appreciated the opportunity to make our case in courtroom this day, and sit up for the spend’s forthcoming ruling.”

Up up to now with assertion from Lyft. Shrimp clarification in lede.

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