A plaque marking meeting locations for Lyft and Uber users at San Diego State University in San Diego, California, May 13, 2020.
Mike Blake | Reuters
Shares of Uber and Lyft soared in pre-market trading after early voting predictions showed Californians decided both companies should be exempt from a labor law aimed at making drivers instead employees. because of the contractor.
Shares in Uber were up more than 12% and Lyft rose more than 17% before the market opened on Wednesday.
Voters are deciding California’s Prop 22, a voting measure that Uber and Lyft are using as a last-ditch hope for the state to continue as it is. The proposal will allow drivers for trucking and delivery companies based on the application to be classified as independent contractors in many cases. While that would disqualify them for employee benefits, it also allows drivers to enjoy new benefits such as minimum income and car insurance.
The companies warned in advance that any incremental costs from the decision would be passed on to their customers.
“We expect other states to be less aggressive in trying to pass similar legislation on AB5, which will be a major win for Uber and its companies,” Bank of America analysts said. its other company ”. “Overall, although Uber still faces regulatory challenges in the UK and other US, the voting helps ease major uncertainty and could open shares for new investors. , capable of supporting pricing. “