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ARTICLE · 25 MARCH 2015

Sharing-Economy Business Models Challenged – Uber And Lyft

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"Sharing economy" business models are increasingly in the legal news, usually under attack or some form of scrutiny.

CanadaEmployment and HR
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O'Connor et al v Uber Technologies Inc, US District Court, Northern District of California, 11 March 2015 C-13-3826 EMC, Judge Edward M. Chen Cotter et al v Lyft, Inc., US District Court, Northern District of California, 11 March 2015, 13-cv-04065-YC, Judge Vince Chhabria

"Sharing economy" business models are increasingly in the legal news, usually under attack or some form of scrutiny. This is not restricted to disputes between taxi regulators and Uber, nor between hotel regulators and AirBNB.

Each of Uber and Lyft have recently been targeted in proposed class action lawsuits brought by former drivers in California, who claim that the companies are employers and owe duties arising from employee protection legislation alleged to apply for the benefit of their drivers. In each case, motions by Uber and Lyft for summary dismissal have been denied, by two different judges on March 11, 2015. 

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