Lyft alleged fraud failed to deliver 1000 dollars promised to the driver

Absrtact: In the mobile travel service provider, Uber in many lawsuits and disputes all over the world, its competitor Lyft relatively quiet. However, Lyft recently also in the United States, the company was accused of fraud, failed to honor the driver promised 1000 dollars new division

In the mobile service providers, Uber in the world into a lot of lawsuits and disputes, the rival Lyft relatively "quiet." However, Lyft recently in the United States, the company was accused of fraud, failed to meet the driver's commitment to the 1000 dollar "new driver introduction fee" and "new Driver entry bonus."

Lyft business model and Uber slightly different, its main service is "private car use leisure time soliciting to earn extra money", the earlier Lyft one of the biggest features, is soliciting the car head hanging a pink beard.

In Friday, Lyft was accused of a San Francisco federal District Court, which allegedly defrauded a total of more than 5 million dollars of new driver introduction commissions. The plaintiff accused Lyft of fraud and breach of contract.

According to reports, in order to expand the driver's team, the Lyft company has previously launched a stimulus policy, if the existing Lyft driver introduced a new driver, the new driver before and after February 25 to submit applications, and on May 5 or before the completion of the first pick-up service, then the driver himself and the new driver to introduce, will receive a special bonus of 1000 dollars.

The stimulus package is being launched in several cities across the United States, including Atlanta, Austin, Boston, Chicago, Los Angeles, Miami and so on.

The policy has set off an unprecedented frenzy of Lyft drivers to introduce new drivers. The plaintiff's lawyer said that thousands of people also applied to join the Lyft driver, which led to Lyft Company's inability to parry.

On the day before the May 5 deadline, the Lyft company sent an e-mail message to some of the newly-applied drivers that some of the applicants ' security background checks (including historical criminal records and driving records) could not be completed in time, so introducing the new drivers would not receive a 1000 dollar bonus.

A plaintiff lawyer said Lyft's own problems led to an inability to investigate the applicant's security background in a timely manner and prevented them from providing the first pick-up service before the final deadline. So Lyft has no reason to refuse to pay the 1000-dollar introductory fee and the entry bonus.

The plaintiffs in the case include an incumbent Lyft driver from San Diego and a new applicant in Los Angeles.

Lyft Chelseawilson, a spokeswoman for the company, said that thousands of new drivers had been eligible for the award, that the drivers had received entry bonuses and introductory fees, and that those who did not meet the requirements, unless they continued to apply for the Lyft driver, Otherwise, the company will not use its submitted information.

Lyft has become one of the three largest mobile service providers in the United States, but the number of cities covered is far less than Uber. At present, Lyft Service has entered 65 cities, and in the latest financing, the company received 530 million U.S. dollars, the report said, the birth of the three-year company, the market value has reached 2 billion dollars.

In contrast, Uber was born six years ago, a total of 6 billion U.S. dollars, its market value as high as 40 billion U.S. dollars, become the world's most valued unlisted technology companies. In terms of business, Uber has entered more than 250 cities in more than 50 countries and regions.

Taxis, car rentals and carpool services, based on smartphones, have rocked the world's taxi industry. In view of this, Uber and other companies in the world into a series of lawsuits, disputes and disputes. Traditional taxi companies believe that Uber, Lyft and so on do not need to apply for a licence, do not buy insurance, constitutes unfair competition, and the lack of the driver background of the investigation and audit, has led to a number of cases affecting passengers.

Many of these disputes and disputes originate from the drivers of Uber and Lyft. Drivers have protested that wages are too low and lack of welfare protection. Earlier, Lyft and Uber's drivers had filed lawsuits against two companies as "independent contractor personnel", depriving them of the right to a California State minimum hourly wage and a driver-related fee.

It is worth mentioning that China Alibaba Group, last year, has taken a stake in the Lyft.