• This Week In Rideshare: IRS, Self-Driving, and Lyft Sues San Francisco.

  • Jan 3 2025
  • Length: 28 mins
  • Podcast

This Week In Rideshare: IRS, Self-Driving, and Lyft Sues San Francisco.

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  • The IRS cracks down on gig workers, self-driving is here, and Lyft sues San Francisco. LegalRideshare breaks it down. IRS CRACKSDOWN ON GIG WORKERS The IRS made it clear it's cracking down on gig work. Gizmodo reported: In a sign that the Internal Revenue Service could be cracking down on gig workers, the agency has received authorization from a federal court to gather information from JustAnswer LLC about any U.S. taxpayers who received compensation through the platform. California federal District Court Judge Dolly Gee approved the agency's request for what is known as a John Doe summons, which seeks information about a group of individuals whom the the government hasn't already identified by name or other means. The summons seeks information about people who received $5,000 or more for answering questions on the JustAnswer platform in any one year from 2017 through 2020. In November, the IRS issued new guidance to gig work platforms instructing them to report information to the agency about taxpayers who earned more than $5,000 in 2024, more than $2,500 in 2025, and more than $600 in 2026 and beyond. Previously, gig platforms only had to report information to the IRS for workers who earned more than $20,000 and completed at least 200 transactions. The new thresholds are designed to make it harder for gig workers to avoid paying taxes on their income. SELF-DRIVING IS HERE 2024 proved that self-driving is here. But is it safe? CNET reported: Waymo plans to expand to Atlanta and Austin, Texas, through a partnership with Uber and is launching its first international testing in Tokyo. Zoox aims to open up to public riders, starting in Las Vegas. And startup Avride, which has also partnered with Uber to deploy its autonomous vehicles and delivery robots, hopes to launch a robotaxi service in Dallas in 2025. Lyft, too, is teaming up with autonomous vehicle companies like May Mobility, aiming to make its fleet of self-driving Toyota Siennas available to riders in Atlanta starting next year. Aside from regulatory hurdles, there's also the considerable challenge of convincing the public that self-driving cars are safe. That's why practically every piece of communication from robotaxi companies touts the safety of their respective vehicles and technology — especially in comparison to human drivers. A Waymo data hub published in September states that after driving over 22 million miles, its self-driving tech was involved in “73% fewer injury-causing crashes and 48% fewer police-reported crashes compared to human drivers.” A 2022 Cruise report states that “there is no ambiguity that human driving mistakes are one of the most substantial factors causing roadway injuries and deaths.” And in an open letter last year, Zoox's chief safety innovation officer noted that, “Data from the National Highway Traffic Safety Administration shows that 94% of crashes are caused by human choice or error.” LYFT SUES SAN FRANSISCO Lyft sues San Francisco due to $100M in charges. TechCrunch reported: Lyft is suing the city of San Francisco, claiming the city unfairly charged the ride-hailing company over $100 million in taxes, Bloomberg reports. The lawsuit alleges that, over the course of five years, San Francisco unfairly labeled money earned by Lyft drivers as company revenue. In the complaint, Lyft maintains that its drivers are its customers, not employees. “Accordingly, Lyft recognizes revenue from rideshare as being comprised of fees paid to Lyft by drivers, not charges paid by riders to drivers,” the complaint reads. The lawsuit is just the latest chapter in a yearslong debate over how gig economy apps should classify drivers. Last summer, Lyft, Uber, and DoorDash notched a win after the California Supreme Court upheld Proposition 22, which allows the companies to classify drivers as independent contractors, meaning the companies do not have to provide drivers with full employee benefits. LegalRideshare is the first law firm in the United States to focus exclusively on Uber®, Lyft®, gig workers, delivery and e-scooter accidents and injuries. Consultations are always free.
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