Lyft has filed a lawsuit against San Francisco, accusing the city of unfairly overcharging $100 million in taxes over five years, raising broader questions about gig-economy regulations and worker classifications, Business Insider reported.

Lyft alleges it was overcharged $100 million in taxes between 2019 and 2023. The lawsuit, filed in California Superior Court, claims the city’s tax calculations misrepresent Lyft’s business model by including passenger payments in the ride-hailing firm’s gross receipts.

According to the filing, San Francisco calculated Lyft’s taxes based on the total amount passengers paid for rides. However, Lyft argues that its revenue is derived from the fees drivers pay to use the platform, not the payments passengers make to drivers.

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