Judge Gives Lyft Something To Worry About Ahead Of Its IPO

Members of the Independent Drivers Guild (Photo: Drew Angerer, Getty)

Back in December, New York City approved the nation’s very first minimum wage pay floor for app-based drivers — a historic victory Lyft undercut almost immediately by challenging the change in court.

Today, drivers got more good news when a judge denied Lyft’s motion for an injunction that would block the minimum wage for its drivers.

The pay floor itself would set a rate of $24 per hour (after expenses) for drivers in one of Lyft’s biggest markets. For its part, Lyft argues the requirement to shell out a living wage would tip the scales in favour of its rival, Uber, which is currently both bigger and richer.

“It’s no secret that Uber has tried to put us out of business in the past,” the company wrote ahead of its initial filing. “They’ve failed repeatedly, and the TLC [Taxi and Limousine Commission] should not assist them in their efforts.”

“We are pleased the judge denied Lyft’s motion to block the wage protection rules for now,” Lyft driver and Independent Drivers Guild member Tina Raveneau wrote in a statement to press today.

“Eighty thousand New Yorkers serve as professional drivers for apps like Lyft and we deserve the protection and the dignity of a livable minimum wage.”

The judge is expected to deliver a written statement within the next 30 days—timing which is less than ideal for Lyft. The company filed its initial public offering at the beginning of this month and now, as the company begins to court investors for its nearly 30.8 million shares and seeks a valuation between $30 and $32 billion, an unfavorable outcome in one of its largest markets could potentially hurt its stock price, which is expect to land around $91 each.

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