Lyft and rival app Uber face separate lawsuits seeking class action status in San Francisco federal court this week brought on behalf of drivers, who believe they are employees and should receive reimbursement for expenses like vehicle maintenance and gas.
Those expenses are currently paid by drivers themselves, according to Reuters.
During a hearing on the Lyft lawsuit yesterday, U.S. District Judge Vince Chhabria said he was torn since traditional employment categories are "woefully outdated" when applied to companies like Lyft. He has withheld judgement as of press time.
Chhabria determined California legal precedents "point pretty strongly in the direction" that "people who do the kinds of things that Lyft drivers do here are employees," according to Reuters.
A hearing on the same exact issue involving Uber will take place Friday with a different judge.
Drivers for both companies have not said yet how much money they are looking for in damages.
Both Lyft and Uber believe that since drivers control their own schedules, aren't assigned to a specific territory and are not given any equipment besides a sign and iPhone that they are not company employees.
"Lyft's business is to maintain an on-line platform, making it possible for riders and drivers to freely arrange transportation by automobile with other members of the community," the company wrote in a court filing, according to Reuters.
Drivers don't agree with that assessment however.
"They're there to further Lyft's mission," said Matthew Carlson, an attorney for the drivers on Thursday.
Uber has raised more than $4 billion from major venture capital firms like Benchmark and Google Ventures, valuing the company at approximately $40 billion and making it the most valuable startup in the U.S.
Lyft has raised $331 million from Andreessen Horowitz, Founders Fund and other investors.
See Now: OnePlus 6: How Different Will It Be From OnePlus 5?
