Lyft has initiated legal action against San Francisco, alleging the city wrongfully imposed over $100 million in taxes on the ride-hailing service. The lawsuit claims that for five years, San Francisco misclassified revenue earned by Lyft drivers as company income. Lyft contends that its drivers should be viewed as customers, with revenue stemming from fees drivers pay to the platform, rather than fares paid by riders. This lawsuit continues the ongoing conversation regarding the classification of gig economy workers, following a California Supreme Court ruling that favored Proposition 22, allowing companies to treat drivers as independent contractors.