Zinger Key Points
- Proposition 22, allowing Uber and Lyft to classify drivers as independent contractors, was upheld.
- Lyft extended its partnership with Payfare, continuing benefits like free instant pay and a robust rewards program for drivers.
- Today's manic market swings are creating the perfect setup for Matt’s next volatility trade. Get his next trade alert for free, right here.
Shares of Uber Technologies, Inc. UBER and Lyft, Inc. LYFT are volatile Thursday following a court ruling allowing the ride-share companies to treat drivers as contractors.
What Happened: The California Supreme Court ruled that Proposition 22, a 2020 ballot measure, is constitutional. This measure allows ride-hailing companies like Uber and Lyft to classify their drivers as independent contractors rather than employees.
This decision is a crucial win for gig-economy companies, preserving their business model and avoiding the additional costs associated with classifying drivers as employees.
UBER, LYFT Price Action: Uber shares were up by 1.62% at $67.21 and LYFT shares were down by 1.86% at $12.15 at the time of writing, according to Benzinga Pro.
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