Uber and Lyft defended their business model in court on Monday, pitching themselves as technology companies that facilitate easier transportation, not outright transportation providers.
Uber and Lyft defended their business model before a Suffolk Superior Court judge on Monday, pitching themselves as technology companies that facilitate easier transportation, not outright transportation providers.
"But a travel agent isn't a provider of transportation," said Michele Maryott, a member of Uber's legal team."A travel agent is an intermediary between those who want a service and those who have a service to provide." "What doesn't vary is that Uber and Lyft determine the amount and the driver doesn't know until after the ride is complete," he said."In other words, a driver transports the rider from point A to point B without ever knowing how much the rider paid for the ride or Uber and Lyft's variable fee. What entrepreneur would do that?"
The law lays out conditions an employer must meet to classify a worker performing a service as an independent contractor instead of an employee. Businesses need to fulfill three prongs: that the worker was"free from control and direction"; that the service provided is"performed outside the usual course of business of the employer"; and that the individual has their own independent business or trade.
One part of their defense will be the ubiquity of"multi-apping," or drivers using more than one platform to find passengers or deliveries. Lyft data show about 44% of drivers use both Uber and Lyft simultaneously, attorneys said. That amendment would have only applied employee status to the section of state law dealing with collective bargaining, and would not have explicitly amended a different chapter laying out the ABC test.
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