Uber, Lyft rise as investors expect California voters to pass Prop 22

A sign marks a rendezvous location for Lyft and Uber users at San Diego State University in San Diego, California, May 13, 2020.

Mike Blake | Reuters

Uber and Lyft shares rose 4.2% and 7.3%, respectively, as investors expect California voters on Tuesday to pass Proposition 22, which would allow the ride-sharing companies to maintain their current business model.

If it passes, Proposition 22 would exempt ride-sharing and delivery companies from a new California law that forces such gig economy companies to reclassify their workers as employees rather than contractors, and offer benefits such as sick leave and unemployment protection. A successful Proposition 22 could also undermine the lawsuit California has brought against Uber and Lyft for allegedly violating that new law.

But if Proposition 22 fails, Uber and Lyft say they will have to change their business models, likely by cutting the number of workers and raising prices for riders. They previously threatened to shut down temporarily in California this summer before an appeals court extended a stay on the issue.  

Uber and Lyft have contributed most of the almost $190 million raised through mid-October to get Proposition 22 passed. The companies have also pushed for Proposition 22 in messages to users on their own apps.

A UC Berkeley poll from late October found 46% of voters were voting yes to Proposition 22, while 42% were voting against and 12% were undecided. MKM Partners released an investor note today with results from its own survey, which found 57% of voters, up from 47% in its Sept. survey, are planning to vote for the proposition.

Source link




One technique for staying upbeat during the pandemic

As the coronavirus pandemic rages on, it can be difficult to remain upbeat.Aside from the health implications and associated financial stressors, uncertainty over...

What to Know About 3D Mammograms

Since your last mammogram, your doctor might have replaced...

Tesla acknowledges Model 3 defect causing rear bumpers to fall off

One of the Tesla Model 3's more prominent design flaws is a rear bumper cover that is prone to being stripped from the...

Gen Z and millennials are changing corporate America

Freelance contractor Upwork had its best growth year as a public company last year and CEO Hayden Brown sees no sign of momentum...