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Uber, Lyft shares soar over 15% after California ballot victory

Uber, Lyft and other ride-hailing apps spent $200 million in a winning bet to circumvent California lawmakers and the courts to preserve their business model by keeping drivers from becoming employees

Topics
Uber | Lyft

Reuters  |  Los Angeles 

Photo: Reuters
Photo: Reuters

and stocks soared on Wednesday after California voters endorsed the gig economy's blistering campaign not to count drivers as employees, even as questions loomed over whether the can secure similar privileges in other US states.

Voters in California on Tuesday backed a ballot proposal by Technologies Inc, Inc and its allies that cements app-based food delivery and ride-hailing drivers' status as independent contractors, rather than employees.

According to state figures, 58 per cent supported the measure, with nearly 99 per cent of precincts at least partially reporting. The results are incomplete and must also be certified. Uber's shares rose 16 per cent, while jumped 18 per cent.

The companies, along with DoorDash, Instacart and Postmates, have collectively poured more than $205 million into the campaign.


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First Published: Wed, November 04 2020. 18:19 IST
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