Lyft Sued For Breach-Of-Contract, Fraud Linked To $1K Bonus Program

Cameron Aubernon
by Cameron Aubernon
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lyft sued for breach of contract fraud linked to 1k bonus program

A 22-page complaint filed against Lyft in federal court says the transportation network company reneged on a $1,000 bonus promised to new drivers.

According to Autoblog, the complaint notes that new drivers who joined Lyft on or after February 25, 2015, and complete their first drive on or before March 5 would be paid a $1,000 signing bonus. This prompted thousands of applications from potential drivers in Atlanta, Austin, Boston, Chicago, Dallas, Denver, Los Angeles, Miami, Nashville, Philadelphia, San Diego, San Francisco, San Jose, Seattle and Washington, D.C.

However, the TNC emailed the new drivers March 4, stating that some of them would not qualify for the bonus because the required background checks into driving and criminal history might not be completed by the deadline.

Representative Chelsea Wilson said Lyft couldn’t comment on the suit, but did say that thousands of new drivers did receive their bonuses, adding that those who didn’t qualify won’t have their information used unless they still want to have a pink glowing mustache on the dash.

The lawsuit was filed on behalf of a driver in San Diego and an applicant in Los Angeles, citing breach-of-contract and fraud as the charges. The suit adds that $5 million in bonuses were lost due to the failure in conducting the checks in a prompt manner.

Cameron Aubernon
Cameron Aubernon

Seattle-based writer, blogger, and photographer for many a publication. Born in Louisville. Raised in Kansas. Where I lay my head is home.

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  • Ryoku75 Ryoku75 on Mar 18, 2015

    Lyfts so shady from the get-go I'm not surprised to see them pulling stunts like this.