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DOJ Sues Lyft, Alleging Rides Denied to Disabled Riders

The Justice Department says Lyft drivers refused riders with service dogs and wheelchairs and seeks $53 million. Lyft disputes the allegations.

The U.S. Justice Department sued ride-hailing company Lyft on Monday, alleging the company and its drivers violated federal disability law by refusing rides to passengers who travel with service animals or use stowable wheelchairs. Lyft disputes the allegations. The claims have not been tested in court.

Reuters reported that the department filed the case in the U.S. District Court for the Northern District of California and is seeking $53 million in compensation for people with disabilities who complained to Lyft or to the department.

What the government alleges

According to a Justice Department press release, the complaint invokes Title III of the Americans with Disabilities Act of 1990, the part of the federal law that bars private transportation companies from discriminating on the basis of disability. The department says the law requires Lyft to carry riders with disabilities and their service animals, and to assist riders who use stowable wheelchairs and other mobility devices.

The department alleges that Lyft and its drivers routinely refuse service to people with disabilities. It also accuses the company of charging improper fees, such as cancellation fees, to riders who were unlawfully turned away. A third allegation is that Lyft refuses to modify its policies so that riders with mobility disabilities can sit in the front seat when they need to.

Beyond the $53 million in damages, the department wants a court order requiring Lyft to stop the alleged discrimination, change its policies and train its staff and drivers on the law. It also seeks a civil penalty, though the press release does not give an amount.

Jesus A. Osete, acting assistant attorney general for the Justice Department’s Civil Rights Division, said in the department’s statement: “Individuals with disabilities should be able to rely on rideshare services free of discrimination.” Craig H. Missakian, the U.S. attorney for the Northern District of California, compared the case to the department’s suit against Uber over similar conduct.

Lyft’s response

Lyft said it disagrees with the allegations. In a statement carried by Reuters, the company said it has long-standing policies requiring drivers to accommodate riders who travel with service animals or use foldable mobility devices, and that drivers who violate those policies face serious consequences, including permanent deactivation. Lyft also said it cooperated with the Justice Department during its review.

Shares of Lyft were down about 1.9% on a market data page associated with the Reuters report, though the timing of that move was not specified.

Why it matters

The suit follows a similar action against Uber. The U.S. government sued Uber last year under the same federal law, seeking $125 million, according to Reuters. Uber said it disagreed with all of the allegations and that it is committed to expanding access for riders with disabilities. Together, the two cases put the country’s two largest ride-hailing platforms under federal scrutiny over how drivers, who are generally classified as independent contractors, treat riders with disabilities.

Lyft has faced a federal disability complaint before. In an earlier settlement announced by the Justice Department, the company agreed to resolve allegations that some drivers refused rides to people using foldable wheelchairs or walkers, paying damages to four complainants and a civil penalty.

What comes next

The case is at its earliest stage. Lyft has not yet filed a formal response in court, and no judge has ruled on the claims. It is not yet known how many riders the $53 million figure would cover or how the department calculated it. Cases of this kind can end in court judgments or negotiated settlements that require changes to company practices.