Why Uber, Lyft And Gig Economy Related Stocks Are Soaring Today?

Anusuya Lahiri
1 min read
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In this article:

  • On Monday, a California appeals court sustained the current law classifying gig workers as independent contractors instead of employees.

  • The ruling marks a big win for Uber Technologies Inc (NYSE: UBER), Lyft Inc (NASDAQ: LYFT), and other gig economy companies, Bloomberg reports.

  • The ruling struck down a lower-court ruling that found Proposition 22 violated California’s constitution.

  • Proposition 22 lets companies treat workers as independent contractors.

  • Proposition 22, passed in November 2020, exempted the gig economy businesses from a state labor law mandating companies to hire workers as employees and provide them benefits.

  • The companies, including Uber, Lyft, DoorDash Inc (NYSE: DASH), and Instacart Inc, need millions of drivers and couriers for on-demand services like ride-sharing and food delivery. The companies collectively spent about $200 million on the campaign to help pass the ballot measure.

  • Price Action: UBER shares are up by 6.26% at $32.74 premarket on the last check Tuesday.

  • Photo by thought-catalog via Unsplash

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