Slack to livestream pitch to shareholders on Monday ahead of direct listing

Slack, the ubiquitous workplace messaging tool, will make its pitch to prospective shareholders on Monday at an invite-only event in New York City, the company confirmed in a blog post on Wednesday. Slack stock is expected to begin trading on the New York Stock Exchange as soon as next month.

Slack, which is pursuing a direct listing, will livestream Monday’s Investor Day on its website.

An alternative to an initial public offering, direct listings allow businesses to forgo issuing new shares and instead sell existing shares held by insiders, employees and investors directly to the market. Slack, like Spotify, has been able to bypass the traditional roadshow process expected of an IPO-ready business, as well as some of the exorbitant Wall Street’s fees.

Spotify, if you remember, similarly livestreamed an event that is typically for investor’s eyes only. If Slack’s event is anything like the music streaming giant’s, Slack co-founder and chief executive officer Stewart Butterfield will speak to the company’s greater mission alongside several other executives.

Slack unveiled documents for a public listing two weeks ago. In its SEC filing, the company disclosed a net loss of $138.9 million and revenue of $400.6 million in the fiscal year ending January 31, 2019. That’s compared to a loss of $140.1 million on revenue of $220.5 million for the year before.

Additionally, the company said it reached 10 million daily active users earlier this year across more than 600,000 organizations.

Slack has previously raised a total of $1.2 billion in funding from investors including Accel, Andreessen Horowitz, Social Capital, SoftBank, Google Ventures and Kleiner Perkins.

Startups Weekly: Will the Seattle tech scene ever reach its full potential?

Greetings from Seattle, the land of Amazon, Microsoft, two of the world’s richest men and some startups.

I’m always surprised the Seattle startup ecosystem hasn’t grown to compete with the likes of Silicon Valley — or at least Boston and New York City — since the dot-com boom. Today, it’s the strongest it’s has been due to the successes of companies like the newly minted unicorn Outreach, trucking business Convoy and, of course, the dog walking startup Rover. But the city still lags behind, failing to adopt the culture of entrepreneurship that defines San Francisco.

I spent a lot of time wondering why it hasn’t reached its full potential. Is it because Microsoft and Amazon pay their employees so well they don’t have the same urge to build something from the ground up? Is it a lack of access to capital? Is the city not attracting top talent? If you have thoughts, send them my way.

“We think part of the issue is a lack of capital and a lack of help,” Rover and Pioneer Square Labs co-founder Greg Gottesman told TechCrunch earlier this year. “If we can provide a little bit of both of those things, we can really put Seattle where it deserves to be, should be and will be.”

Despite its shortcomings, there is still some action in the city I want to highlight this week. A same-day delivery business, Dolly, is on the rise. The startup told me on Thursday it had raised a $7.5 million round from Unlock Venture Partners, Maveron and Jeff Wilke, the chief executive officer of Amazon Worldwide Consumer. Maveron, if you remember, is the VC fund co-founded by Starbucks founder Howard Schultz.

In other Seattle news, Madrona Venture Group, a well-regarded fund, raised an additional $100 million this week. Typically, Madrona focuses on companies based in the Pacific Northwest, but this fund will deploy capital throughout the entire U.S. Hmmm, that’s not necessarily a good sign for Seattle founders, but great progress for the ecosystem nonetheless.

If you’re interested in learning more about Seattle tech, I’ve covered it a bit because it’s my hometown! Start with this story, which dives deep into a Seattle accelerator that’s working hard to encourage entrepreneurship in the city. Alright, on to other news.

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IPO corner!

WeWork: The co-working giant now known as The We Company submitted confidential IPO documents to the SEC, the company confirmed in a press release Monday. Is this the next massive startup win or a house of cards waiting to be toppled by the glare of the public markets? TechCrunch’s Danny Crichton investigates.

Slack: The business is in its final steps toward a much-anticipated direct listing, with one source telling TechCrunch the listing will be complete within 45 days. The WSJ reported this week that Slack will make an online presentation to potential shareholders on May 13. This week, we dug deep into Slack’s S-1 and decided to evaluate just how well the tech press, us included, did in covering the company. For the most part, the tech press did decently well, except for one curious, $162 million gap.

Uber: Finally! That ride-hailing company is going public next week. That latest news? Uber co-founder Travis Kalanick won’t be ringing the opening bell. Uber would not be where it is today without Kalanick, but him being there would surely be a reminder of Uber’s rocky past.

Beyond Meat: Shares of the company surged up 135 percent in their market opener last week, valuing the company as high as $3.52 billion. Volatility was so high on the company’s stock that the Nasdaq had to pause trading of “BYND” shares.

Micro-mobility instability:

Ofo has run into its fair share of issues, laying off hundreds of workers, shutting down its international division and more. Now, you can buy a piece of the startup’s history.

In other micro-mobility news, Lyft’s head of scooter & bikes Liam O’Connor, who was hired to help transportation company Lyft build its bike and scooter operations, has left after seven months with the newly-public company. TechCrunch’s Ingrid Lunden has the scoop. Plus, Bird, the electric scooter unicorn doing its best to overcome regulatory barriers, has made its way back to San Francisco. Bird is using its business license in San Francisco to introduce monthly personal rentals in the city. The program enables people to rent a scooter for $24.99 a month with no cap on the number of rides. We’ll how that goes.

WTF?

For some reason, people are giving Magic Leap more money. The company has secured another $280 million in a deal with Japan’s largest mobile operator, Docomo. Do you know what that means? The developer fo AR/VR headsets has raised a total of $2.6 billion. We’re just as confused as you.

Brand new venture capital funds:

Unshackled Ventures raised $20 million. 

Jungle Ventures closed on $175 million.

And Toyota AI Ventures launched a $100 million fund.

Startup Capital

Uber investors exit

I have the inside story on Menlo Ventures early Uber stake and TechCrunch’s Connie Loizos goes deep with early Uber backer Bradley Tusk.

Extra Crunch!

This week, we offer TechCrunch Extra Crunch subscribers exclusive tips on building extraordinary teams. Plus, the final piece in TechCrunch’s Greg Kumparak’s series on Niantic, the fast-growing developer of Pokemon Go. If you recall, we’ve captured much of Niantic’s ongoing story in the first three parts of our EC-1, from its beginnings as an “entrepreneurial lab” within Google, to its spin-out as an independent company and the launch of Pokémon GO, to its ongoing focus on becoming a platform for others to build augmented reality products upon.

If you enjoy this newsletter, be sure to check out TechCrunch’s venture-focused podcast, Equity. In this week’s episode, available here, Crunchbase News editor-in-chief Alex Wilhelm and TechCrunch’s Danny Crichton chat about updates at the Vision Fund, Cheddar’s big exit and more of this week’s headlines.

Autonomous vehicles make congestion pricing even more critical

Autonomous vehicles will soon be ubiquitous on city streets. Before this happens, we should ask ourselves: Will they whisk us quickly through cities or make traffic worse?

A car is a car, whether self-driving or people driven—taking up a great deal more space than busses, streetcars, or trains—so let’s make sure the cost is right. Traffic has already increased in many cities due to widespread ride-hailing. Once Uber further rolls out autonomous vehicle fleets, calling a car will be cheaper, more competitive—and a potential burden on our streets.

A new study by UC Santa Cruz Professor Adam Millard-Ball in the Journal of Transportation Policy makes a convincing case that self-driving cars will dramatically increase traffic further. Millard-Ball forecasts that the number of cars on the street could grow exponentially as more people are able to take their hands off the steering wheel and just sit back and ride.

Furthermore, when not in use, autonomous vehicles need to go somewhere. There are three options: go back home, park somewhere, or circle around. Most likely, these cars will endlessly circle the streets rather than parking and paying fees.

The rise in ride-hailing speaks to the need to think about congestion pricing — even more so in light of autonomous vehicles potentially circling the city aimlessly in the years to come — in more dynamic terms.

Image courtesy of Getty Images

Existing congestion pricing schemes work a few different ways. Most programs either identify a core part of the city or specific zones within the city to institute a flat or variable rate fee on vehicles that drive into the specified areas. The systems monitor compliance through gantry and camera systems that record license plates, or some version of transponders in vehicles. All congestion pricing systems attach a price to road usage.

Particularly, variable pricing that captures usage throughout the city could lead to different decision-making by autonomous vehicles. Rather than ghosting through the streets waiting to pick up passengers, these cars could instead choose to park in either the core of the city or on the periphery, helping to unclog streets rather than adding to traffic.

Variable pricing increases as traffic increases, thereby pushing some drivers—or in the future self-driving vehicles—off the road and making cars glide more smoothly. In the US, we are most familiar with variable tolling schemes implemented on highways, but congestion pricing systems like those in Singapore and Stockholm include a variable nature to them throughout the congestion zone.

Image courtesy of Getty Images

Congestion pricing could directly counteract an increase in vehicle usage, and ensure self-driving cars pay full freight for the impact they create. New York City will be implementing a congestion zone starting in 2021 that will affect all drivers south of 60th Street entering Manhattan. While the final structure is still to be determined, experts say it could bring in more than $1 billion a year to support public transit upgrades.

Across the pond, London’s policy — first implemented in 2003 — covers a core eight mile square zone and currently costs around $15. From 2002 to 2014, private cars entering the central zone dropped 39%. However, with the rapid increase in ride-hailing brought about by Uber and other companies, congestion has again increased.

In the Washington, D.C., and LA regions, variable pricing — just not in a downtown congestion zone — already provides highway drivers with the option to pay to drive in a free-flowing lane. The cost to consumers is anything but free, because the cost must line up with demand to keep traffic moving. In the Washington, D.C., region, the charges to drive from the city from far-out suburbs peaked near $40. But that was what it cost to keep traffic moving.

Singapore, on the other hand, extends this logic to the core of its city with its congestion pricing model. The city has over 50 points within the designated area in and around the central business district, and each of these points charges between $0 – $3, depending on the time of day and traffic conditions. Stockholm follows a similar logic to Singapore’s system with a total cap of around $11.30 per vehicle per day.

Good, responsive public policy can help us make the right choices. Congestion pricing can serve as a market-based regulator that gets the right number of cars on the street at a given time. At the same time, depending on the fuel mix of cars with gas versus electric, these systems can improve air quality and public health. And the funds from these plans can help support and improve transit systems.

When you ask city leaders what kind of cities they and their residents are trying to build, the resounding answer is cities for people, not cars. Let’s make sure self-driving vehicles help make cities better for everyone.

Add Craigslist to the tech platforms Russians used to manipulate the 2016 election

In one of the weirder revelations to come out of the Mueller report released this morning, it seems that Craigslist was yet another tech platform used in Russia’s election influence campaign.

Facebook? Sure. Instagram? Yup, that too. YouTube? Twitter? Oh my, yes. Even Tumblr makes an appearance (LOL. Tumblr).

But Craigslist?

Apparently the Russians used the platform (alongside Facebook and the rest) to facilitate their real-life trolling campaigns.

The Russian influence operations included things like recruiting individuals to walk around New York City “dressed up as Santa Claus with a Trump mask” (the relevant section is on page 32 of the Mueller report). Craigslist may have also been used in other schemes — like hiring a self-defense instructor to offer classes sponsored by a Russian operative working under the persona “Black Fist” to teach African-Americans how to protect themselves in encounters with law enforcement.

The fact that Russians affiliated with the Internet Research Agency were using Craigslist in addition to all of the other tech tools at their disposal is interesting and comes from a footnote in the Mueller report.

We don’t know the full extent of contacts between Russian operatives and Craigslist and have reached out to them for comment.

Kindbody raises $15M, will open a ‘Fertility Bus’ with mobile testing & assessments

Kindbody, a startup that lures millennial women into its pop-up fertility clinics with feminist messaging and attractive branding, has raised a $15 million Series A in a round co-led by RRE Ventures and Perceptive Advisors.

The New York-based company was founded last year by Gina Bartasi, a fertility industry vet who previously launched Progyny, a fertility benefit solution for employers, and FertilityAuthority.com, an information platform and social network for people struggling with fertility.

“We want to increase accessibility,” Bartasi told TechCrunch. “For too long, IVF and fertility treatments were for the 1 percent. We want to make fertility treatment affordable and accessible and available to all regardless of ethnicity and social economic status.”

Kindbody operates a fleet of vans — mobile clinics, rather — where women receive a free blood test for the anti-Müllerian hormone (AMH), which helps assess their ovarian egg reserve but cannot conclusively determine a woman’s fertility. Depending on the results of the test, Kindbody advises women to visit its brick-and-mortar clinic in Manhattan, where they can receive a full fertility assessment for $250. Ultimately, the mobile clinics serve as a marketing strategy for Kindbody’s core service: egg freezing.

Kindbody charges patients $6,000 per egg-freezing cycle, a price that doesn’t include the cost of necessary medications but is still significantly less than market averages.

Bartasi said the mobile clinics have been “wildly popular,” attracting hoards of women to its brick-and-mortar clinic. As a result, Kindbody plans to launch a “fertility bus” this spring, where the company will conduct full fertility assessments, including the test for AMH, a pelvic ultrasound and a full consultation with a fertility specialist.

In other words, Kindbody will offer all components of the egg-freezing process on a bus aside from the actual retrieval, which occurs in Kindbody’s lab. The bus will travel around New York City before heading west to San Francisco, where it plans to park on the campuses of large employers, catering to tech employees curious about their fertility.

“Our mission at Kindbody is to bring care directly to the patient instead of asking the patient to come to visit us and inconvenience them,” Bartasi said.

A sneak peek of Kindbody’s “fertility bus,” which is still in the works

Kindbody, which has raised $22 million to date from Green D Ventures, Trailmix Ventures, Winklevoss Capital, Chelsea Clinton, Clover Health co-founder Vivek Garipalli and others, also provides women support getting pregnant with in vitro fertilisation (IVF) and intrauterine insemination (IUI). 

With the latest investment, Kindbody will open a second brick-and-mortar clinic in Manhattan and its first permanent clinic in San Francisco. Additionally, Bartasi says they are in the process of closing an acquisition in Los Angeles that will result in Kindbody’s first permanent clinic in the city. Soon, the company will expand to include mental health, nutrition and gynecological services.

In an interview with The Verge last year, Bartasi said she’s taken inspiration from SoulCycle and DryBar, companies whose millennial-focused branding strategies and prolific social media presences have helped them accumulate customers. Kindbody, in that vein, notifies its followers of new pop-up clinics through its Instagram page.

In the article, The Verge called Kindbody “the SoulCycle of fertility” and questioned its branding strategy and its claim that egg freezing “freezes time.” After all, there is limited research confirming the efficacy of egg freezing.

“The technology that allows for egg-freezing has only been widely used in the last five to six years,” Bartasi explained. “The majority of women who froze their eggs haven’t used them yet. It’s not like you freeze your eggs in February and meet Mr. Right in June.”

Though Kindbody touts a mission of providing fertility treatments to the 99 percent, there’s no getting around the sky-high costs of the services, and one might argue that companies like Kindbody are capitalizing off women’s fear of infertility. Providing free AMH tests, which often falsely lead women to believe they aren’t as fertile as they’d hoped, might encourage more women to seek a full-fertility assessment and ultimately, to pay $6,000 to freeze their eggs, when in reality they are just as fertile as the average woman and not the ideal candidate for the difficult and uncomfortable process.

Bartasi said Kindbody makes all the options clear to its patients. She added that when she does hear accusations that services like Kindbody capitalize on fear of infertility, they tend to come from legacy programs and male fertility doctors: “They are a little rattled by some of the new entrants that look like the patients,” she said. “We are women designing for women. For far too long women’s health has been solved for by men.”

Kindbody’s pricing scheme may itself instill fear in incumbent fertility clinics. The startup’s egg-freezing services are much cheaper than market averages; its IVF services, however, are not. Not including the costs of medications necessary to successfully harvest eggs from the ovaries, the average cost of an egg-freezing procedure costs approximately $10,000, compared to Kindbody’s $6,000. Its IVF services are on par with other options in the market, costing $10,000 to $12,000 — not including medications — for one cycle of IVF.

Kindbody is able to charge less for egg freezing because they’ve cut out operational inefficiencies, i.e. they are a tech-enabled platform while many fertility clinics around the U.S. are still handing out hoards of paperwork and using fax machines. Bartasi admits, however, that this means Kindbody is making less money per patient than some of these legacy clinics.

“What is a reasonable profit margin for fertility doctors today?” Bartasi said. “Historically, margins have been very, very high, driven by a high retail price. But are these really high retail prices sustainable long term? If you’re charging 22,000 for IVF, how long is that sustainable? Our profit margins are healthy.”

Bartasi isn’t the only entrepreneur to catch on to the opportunity here, as I’ve noted. A whole bunch of women’s health startups have launched and secured funding recently.

Tia, for example, opened a clinic and launched an app that provides health advice and period tracking for women. Extend Fertility, which like Kindbody, helps women preserve their fertility through egg freezing, banked a $15 million round. And a startup called NextGen Jane, which is trying to detect endometriosis with “smart tampons,” announced a $9 million Series A a few weeks ago.

Hometalk raises $15M to grow its DIY community

Hometalk, a DIY community site with just under 10 million monthly users and over 21 million monthly visits, today announced that it has raised a $15M growth round led by NFX, with participation from WeWork founder and CEO Adam Neumann and Altair Capital.

If you’re not familiar with Hometalk, you can think of the site as kind of DIY-centric Houzz, with a focus on visuals and step-by-step guides for doing projects inside your home. Those user-written guides cover everything from fixing clogged sink drains to repairing drywall, as well as more complex home improvement projects, and can feature text, images and video.

It’s very much a community-driven site and its 17 million registered users have now created over 140,000 tutorials. In total, these have been viewed over 2.5 billion times in the last year, the company says.

Until now, the site’s revenue mostly came from advertising. Going forward, though, the company plans to expand its offerings and introduce new revenue streams. Unsurprisingly, that’s what a lot of the new funding will go towards, too. Those new revenue streams include a marketplace, subscription service and branded content — all of which are logical additions for a site that already focuses on helping people improve their homes and who will likely need the right tools to do so.

“We always believed there is a massive, unmet need in the market for people to create the home they love by unlocking their creativity and giving them tools to empower this,” Hometalk founder and CEO Yaron Ben Shaul said. “The growth we have experienced demonstrates not only the product-market fit for Hometalk, but also the large opportunity we have ahead. We are most proud to have such an active, engaged community that trusts and relies on Hometalk as its go-
to place for creativity.”

The company was founded in 2011 and currently has 60 employees in offices in New York City and Jerusalem.

WeWork backs New York tech clubhouse Betaworks Studios

Betaworks Studios, the brainchild of New York City seed-stage venture capital fund Betaworks, has amassed the support of WeWork, or The We Company, as they now call themselves.

JLL Spark Ventures and the co-working giant have led co-led a $4.4 million investment in the membership-based co-working club described as a supportive community for builders. Launched in 2018, Betaworks Studios offers entrepreneurs, artists, engineers and creatives a place to work on projects and accumulate a network, similar to a WeWork hub.

Betaworks Ventures, which filed today to raise a $75 million sophomore fund, and BBG Ventures have also participated in the funding for Betaworks Studio, which previously raised a pre-seed round led by BBG.

Founded in 2008 by John Borthwick, Betaworks operates an investment fund, an accelerator and builds companies internally with spinouts including Giphy, Digg and Bit.ly. The idea for Betaworks Studios was to expand its resources and network to the greater entrepreneurial community.

Borthwick brought on Daphne Kwon, the former chief financial officer of Goop, to run the studio arm, which charges $2400 per year or $225 per month.

Betaworks says its studio has hosted some 9,000 people for meetings and speaking events. It currently has only one club location in New York City’s Meatpacking District but plans to open additional studios with the fresh cash.

Mattress startup Casper said to be valued at $1.1B with new funding

Direct-to-consumer mattress business Casper has secured a $100 million Series D investment from existing investors Target, NEA and Norwest Venture Partners.

The fresh infusion of capital values Casper at $1.1 billion, Bloomberg reports. We’ve reached out to Casper to confirm the numbers.

Casper posted $373 million in net revenue in 2018, according to leaked financials published by The Information this week. The company, of course, isn’t profitable, with losses reaching $64 million last year. According to its projections, Casper will become profitable on an EBITDA basis in 2019 and is expecting revenues of $556 million this year.

Casper has previously raised $240 million in equity funding from celebrity investors Leonardo DiCaprio and 50 Cent, as well as institutional investors Lerer Hippeau and IVP.

Founded in 2014, the New York business will use the latest investment to expand overseas and open additional brick-and-mortar stores. Competing with other well-funded startups in the business of sleep, like the publicly traded Purple and the VC-backed Leesa Sleep, Casper has taken to physical retail to augment its following. The company opened its first store in New York City in 2018 and has detailed additional plans to open another 200 stores.

An initial public offering is likely the next step for the sleep products retailer, which sells pillows and an $89 sleep-friendly light, in addition to mattresses. Per a recent Reuters report, Casper is in the process of hiring underwriters for its IPO.

Flying taxi startup Blade is helping Silicon Valley CEOs bypass traffic

One year after a $38 million Series B valued on-demand aviation startup Blade at $140 million, the company has begun taxiing the Bay Area’s elite.

As part of a new pilot program, Blade has given 200 people in San Francisco and Silicon Valley exclusive access to its mobile app, allowing them to book helicopters, private jets and even seaplanes at a moments notice for $200 per seat, at least.

Blade, backed by Lerer Hippeau, Airbus, former Google CEO Eric Schmidt and others, currently flies passengers around the New York City area, where it’s headquartered, offering the region’s wealthy $800 flights to the Hamptons, among other flights at various price points. According to Business Insider, it has worked with Uber in the past to help deep-pocketed Coachella attendees fly to and from the Van Nuys Airport to Palm Springs, renting out six-seat helicopters for more than $4,000 a pop.

Its latest pilot seems to target business travelers, connecting riders to the San Francisco International Airport and Oakland International Airport to Palo Alto, San Jose, Monterey and Napa Valley. The goal is to shorten trips made excruciatingly long due to bad traffic in major cities like New York, Los Angeles and San Francisco. Recently, the startup partnered with American Airlines to better establish its network of helicopters, a big step for the company as it works to integrate with existing transportation infrastructure.

Blade, led by founder and chief executive officer Rob Wiesenthal, a former Warner Music Group executive, has raised about $50 million in venture capital funding to date. To launch at scale and, ultimately, to compete with the likes of soon-to-be-public transportation behemoth Uber, it will have to land a lot more investment support.

Uber too has lofty plans to develop a consumer aerial ridesharing business, as do several other privately-funded startups. Called UberAIR, Uber will offer short-term shareable flights to commuters as soon as 2023. The company has raised billions of dollars to turn this sci-fi concept into reality.

Then there’s Kitty Hawk, a company launched by former Google vice president and Udacity co-founder Sebastian Thrun, which is developing an aircraft that can take off like a helicopter but fly like a plane for short-term urban transportation purposes. Others in the air taxi or vertical take-off and landing aircraft space, including Volocopter, Lilium and Joby Aviation, have raised tens of millions to eliminate traffic congestion or, rather, to chauffer the rich.

Blade’s next stop is India, the Financial Times reports, where it will conduct a pilot connecting travelers in downtown Mumbai and Pune. The company tells TechCrunch they are currently exploring one additional domestic pilot and one additional international pilot.

Lyft’s driver wage lawsuit in NYC continues

As Lyft gears up to list its stock on the NASDAQ, the transportation company is facing ongoing litigation regarding driver wages in New York City. Today, a judge denied Lyft’s motion for an injunction blocking the recent ruling that sets a minimum wage for drivers. Still, the judge said she’ll think it over and file a written ruling in the next 30 days. This comes shortly after a number of drivers protested Lyft’s lawsuit against the city of New York earlier this morning.

“We are pleased the judge denied Lyft’s motion to block the wage protection rules for now and we hope she will uphold the city’s rules in her written decision.” Independent Drivers Guild member and Lyft driver Tina Raveneau said in a statement. “Eighty thousand New Yorkers serve as professional drivers for apps like Lyft and we deserve the protection and the dignity of a livable minimum wage. It is like a punch in the gut to us, the drivers who helped build this company, that Lyft stood in court suing to block higher wages at the same time as they moved toward an IPO at a $23 billion valuation. We are finally making more than we have in years thanks to the new pay rules, but Lyft wants to bring it back to the way it was before, poverty wages.”

Lyft filed the lawsuit earlier this year, arguing the new rules give an advantage to Uber, will reduce driver earnings and exacerbate congestion. At the time, Lyft said its suit was “not directed at the law passed by New York City Council, but rather at the TLC’s complex formula for implementation.” Lyft is a proponent of a weekly pay standard but argues the TLC’s approach does not take into account things like drivers who use multiple apps and fluctuating demand.

“We support the New York City Council’s minimum earnings goal, but oppose the TLC’s specific rules because they actually hurt earning opportunities for drivers, and provide advantages to certain companies over others,” Lyft spokesperson Campbell Matthews said in a statement. “We appreciated the opportunity to make our case in court today, and look forward to the judge’s forthcoming ruling.”

The suit came after the NYC Taxi and Limousine Commission in December approved new rules to offer a minimum hourly wage of $17.22 (after expenses) to drivers who work for ride-hailing companies like Uber, Lyft, Via and Juno. The two-year-long campaign for minimum wage was spearheaded by The Independent Drivers Guild, a labor organization that advocates for drivers. The rules require companies to pay drivers according to a formula based on mileage, time and utilization rate (average percentage of time drivers have passengers in their cars),

Lyft has recently said that it is committed to increasing the earnings of drivers and supports the NYC council’s minimum earnings goal. But it filed the lawsuit, Lyft said in a recent blog post, “to correct the flawed implementation of the law by NYC’s Taxi & Limousine Commission.”

These rules legally went into effect in February. Since then, Lyft says there has been a negative impact on driver earnings. That’s because, Lyft says, the cost for passengers increased 24 percent, which led to rides dropping 26 percent and driver earnings dropping 15 percent. Lyft had to then take “action to stabilize the market largely through the use of passenger discounts. We won’t do this forever, but knew it was important for both the driver community and Lyft while the lawsuit progressed.”