Uber, Lyft Shares Jump as Calif Court Rules in Favor of Classifying Drivers as Contractors

By Sabela Ojea

Shares of Uber Technologies Inc. and Lyft Inc. on Monday rose 4.4% and 5.2% respectively in after-hours trading Monday after a California appeals court ruled in favor of the companies' right to treat drivers as contractors.

The ride-hailing companies state victory reverses a prior ruling that classified as unconstitutional the treatment of drivers as independent contractors.

It also upholds the state's Proposition 22, which preserves the so-called gig-economy business model.

Uber and Lyft are in a conflict with regulators over whether and how to grant more benefits such as paid sick leave and health insurance to workers in the gig economy, where apps distribute individual tasks to a pool of people whom companies generally regard as independent contractors.

Write to Sabela Ojea at [e-mail]; @sabelaojeaguix

(END) Dow Jones Newswires

03-13-23 2016ET