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

A news24nation denotes a meeting area for Lyft and Uber clients 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%, individually, as financial specialists expect California electors on Tuesday to pass Proposition 22, which would permit the ride-sharing organizations to keep up their present plan of action.

On the off chance that it passes, Proposition 22 would absolve ride-sharing and conveyance organizations from another California law that powers such gig economy organizations to rename their laborers as representatives instead of contractual workers, and offer advantages, for example, wiped out leave and joblessness insurance. A fruitful Proposition 22 could likewise subvert the claim California has brought against Uber and Lyft for purportedly abusing that new law.

However, in the event that Proposition 22 falls flat, Uber and Lyft state they should change their plans of action, likely by cutting the quantity of laborers and raising costs for riders. They recently took steps to close down incidentally in California this mid year under the watchful eye of an offers court broadened a stay on the issue.

Uber and Lyft have contributed the greater part of the nearly $190 million raised through mid-October to get Proposition 22 passed. The organizations have likewise pushed for Proposition 22 in messages to clients all alone applications.

A UC Berkeley survey from late October discovered 46% of electors were casting a ballot yes to Proposition 22, while 42% were casting a ballot against and 12% were uncertain. MKM Partners delivered a speculator note today with results from its own review, which discovered 57% of citizens, up from 47% in its Sept. review, are wanting to decide in favor of the recommendation.