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 UBER, Lyft 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.
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