Uber and Lyft Stocks Rise on California Gig Worker Ballot Measure

Stock prices for leading American ride-sharing companies, Uber and Lyft, are experiencing significant gains in pre-market activity this morning, driven by the anticipated approval of Proposition 22. This California ballot initiative permits technology-driven, on-demand businesses to maintain their classification of gig workers as independent contractors.

Uber’s stock has increased by 11.88% during pre-market trading, while Lyft’s stock – which relies more substantially on the U.S. market, particularly California – has surged by an impressive 14.9% prior to market opening today.

According to TechCrunch, the ballot measure appeared likely to pass around 3:00 AM Eastern Time yesterday. Vote counting has continued, with Google’s election data currently showing Proposition 22 receiving a 58.4% approval rate with 71% of anticipated votes tallied.

The positive impact is being observed in the valuations of publicly traded on-demand companies, and also extends to DoorDash. DoorDash, a major food delivery service supported by SoftBank and other investors, has submitted a confidential initial public offering (IPO) filing but has not yet published its S-1 document.

Investors in DoorDash are benefiting similarly to Uber and Lyft shareholders, anticipating continued operational stability in California without substantial alterations to pricing or business models, as well as an increase in company value.

The passage of Proposition 22 may accelerate DoorDash’s plans to enter the public market.

These three companies, alongside Postmates, invested considerable resources to support the passage of Proposition 22, as previously reported by TechCrunch:

This investment now appears to have been a sound business decision. However, the outcome represents a setback for proponents of labor rights.