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

  • 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 UBERLyft Inc 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 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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