Shares of American ride-hailing giants Uber and Lyft are sharply higher in pre-market trading this morning on the expected passage of Proposition 22, a California ballot measure that allow tech-enabled, on-demand companies to continue classifying gig-workers as independent contractors.
Shares of Uber are up 11.88% in pre-market trading, while shares of Lyft — which is more heavily dependant on the U.S. market, and thus California — is up a staggering 14.9% before the market open today.
TechCrunch noted that the ballot measure looked set to pass around 3 am Eastern Time last night. The vote has continued to come in, with Google’s election data giving Proposition 22 a 58.4% positive tally with 71% of expected votes reporting.
We’re only seeing the value of public on-demand companies, but the value of DoorDash also rose this morning. DoorDash, a food-delivery giant backed by SoftBank and others, has confidentially filed to go public but has yet to release its S-1 filing.
Still, investors in the company are picking up the same boon that Uber and Lyft shareholders are enjoying today, both in terms of continued operational capability in California without radical price changes or shaking up their business practices as well