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With IPO on tap, Lyft faces suit over wheelchair accessibility

San Jose Mercury News - 3/28/2019

March 27-- Mar. 27--Just days before Lyft's initial public offering, the ride-hailing company is facing a class-action lawsuit over accessibility.

The Disability Rights Association asserts that Lyft has failed to make its drivers' vehicles accessible to riders with wheelchairs. The suit, filed last week in the United States District Court for the Northern District of California, doesn't seek any monetary damages, but wants Lyft to modify its policies and practices to include ready access to wheelchair accessible vehicles (WAV) for riders who need such services.

The plaintiffs in the case include Community Resources for Independent Living, Independent Living Resource Center San Francisco, and four Bay Area individuals who use wheelchairs: Judith Smith, Julie Fuller, Sascha Bittner and Tara Ayres.

In the suit, the plaintiffs cited multiple examples of times when they were either unable to use or chose not to use Lyft's services due to the inability of being able to get a ride in a vehicle that was wheelchair accessible.

"Lyft knows its service discriminates against people who use wheelchairs, and it has had plenty of time and resources to fix this problem," said Melissa Riess, a staff attorney at Disability Rights Advocates who represents the plaintiffs in the case. "We will hold them accountable until they comply with their obligation to provide equal access."

Lyft didn't immediately respond to a request for comment about the suit.

Meanwhile, Lyft continued preparing for its IPO on Friday. The company is expected to offer 30.77 million shares at $62 to $68 a share when it starts trading under the symbol LYFT. Some Wall Street analysts have already started their coverage of Lyft and think investors could be undervaluing the company.

Dan Ives, of Wedbush Securities, initiated his coverage of Lyft on Wednesday with a neutral rating, but with an $80-a-share price target on the company's stock. Ives noted Lyft's position at the solid No. 2 company (behind Uber) in the U.S. ride-sharing industry, and the expectations for its $8 billion in bookings in 2018 to double in the next two years as among the reasons for his upbeat take on Lyft's investment potential.

"The brand loyalty of Lyft has been quite impressive as the company continues to attract drivers and riders with its brand associated with corporate responsibility and social values," Ives said in a research note.

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