Uber, Lyft shares jump as California set to pass gig-worker ballot measure

[November 04, 2020]    (Reuters) - Shares of Uber Technologies Inc and Lyft Inc jumped in premarket trading on Wednesday, as Wall Street cheered the app-based firms' projected victory in their battle to set the terms of the gig economy they have helped create.

A sign marks a rendezvous location for Lyft and Uber users at San Diego State University in San Diego, California, U.S., May 13, 2020. REUTERS/Mike Blake

Voters in California backed a ballot proposal by Uber and its allies that cements app-based food delivery and ride-hailing drivers' status as independent contractors, according to a projection by data provider Edison Research.

Uber's shares rose 12%, while Lyft jumped 16%. The companies, along with DoorDash, Instacart and Postmates, have collectively poured more than $205 million into the campaign.

The ballot measure, known as Proposition 22, marks the culmination of years of legal and legislative wrangling over a business model that introduced millions of people to the convenience of ordering food or a ride online.

After Edison made the projection, state figures showed 58% in support of the measure, with nearly 95% of precincts at least partially reporting. The results are incomplete and must also be certified.

(Reporting by Munsif Vengattil and Tina Bellon; Editing by Shinjini Ganguli)

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