Austin/Request A Ride” illustrates the difference between transportation companies like Uber
and Lyft, and other platforms.
“Request A Ride” sprang up on Facebook in the wake of Uber’s
and Lyft’s decisions to temporarily stop operating in Austin, TX. That group allowed potential
drivers and passengers to find each other and negotiate a trip – but the group did not match
drivers and riders, set nonnegotiable prices for rides, or vet drivers or passengers. In this
scenario, Facebook is not in the transportation business, nor does it employ any drivers who
arrange to sell a ride through the “Request A Ride” group. The difference is that Facebook
provides a platform that is (within reasonable limits) open to users to exchange all sorts of
commodities and services under a wide range of conditions. In contrast, an Uber driver could
neither log onto Uber to offer rides under different terms and conditions than the ones Uber sets,
nor could they use Uber to offer housecleaning. The reason for this is that Uber and Lyft use
their apps to sell the transportation services that their drivers then provide.
IV. Ride-hail platforms Uber and Lyft exercise sufficient direction, supervision, and
control over the drivers to support finding an employment relationship.
Whether a company satisfies the “control” test is usually a factual determination based on
evidence of the employer’s control over and right to control the work, worker, and/or results
produced. Uber and Lyft direct, control, and supervise how drivers do their work. That these
companies offer drivers some flexibility in some aspects of their work – such as when they are
available to drive – does not change the fact that these companies exercise control over
fundamental aspects of drivers’ work. These aspects include when drivers will be engaged to
pick up a passenger, who that passenger will be, and how much the fare will be.
A. Uber and Lyft direct drivers’ interactions with customers: Uber and Lyft provide
detailed instructions on all aspects of drivers’ contacts with customers. They direct
drivers in how to handle passenger pick-ups, including how long to wait, and how and
when to communicate with passengers regarding pick-ups and drop-offs.
Both
companies have established the minimum wait times required for a driver to receive a
cancellation fee.
Uber and Lyft also provide detailed instructions to drivers on how they
should interact with customers, including what topics of conversation are considered
“inappropriate.”
The companies also give specific instructions to drivers as to when and
how they can accept tips.
In addition, the contract between the drivers and the
companies require drivers not to hold themselves out as employees and breach of this
provision could lead to termination.
Both companies instruct their employee drivers that
The original Facebook page can still be visited. https://www.facebook.com/groups/ArcadeCityAustin (last
accessed Apr. 6).
https://help.uber.com/riders/article/picking-up-riders?nodeId=3babfaf5-9075-4f62-b0de-b104c0e9af13;
https://help.lyft.com/hc/en-us/articles/115013080028-How-to-give-a-Lyft-ride#info (last accessed Apr. 6).
https://help.uber.com/driving-and-delivering/article/how-are-rider-cancellation-fees-charged-?nodeId=eebc0564-
5228-4d70-997c-0fe63f0753c2; https://help.lyft.com/hc/en-us/articles/115012922847 (last accessed Apr. 6).
On the Uber Premium services, the company directs drivers to either stay silent or to chat with the rider, based on
the stated preference of the rider.
https://venturebeat.com/2019/05/14/uber-now-lets-premium-riders-opt-out-of-
conversations-with-drivers (last accessed Apr. 6, 2020).
https://www.uber.com/us/en/drive/driver-app/how-tips-work; https://help.lyft.com/hc/en-
us/articles/115013080028-How-to-give-a-Lyft-ride#how (last accessed Apr. 6).
Reviewing Uber’s terms for drivers requires logging in, but Lyft’s language is public.
https://www.uber.com/us/en/safety/uber-community-guidelines ("Drivers and delivery people can access their legal