May 4, 2021
Lyft, DoorDash, and Uber saw all of their stocks fall off a cliff on Thursday when Marty Walsh, Biden’s Labor Secretary, said that “gig workers should be classified as employees” and that they want to “make sure success trickles down to the worker”. As a result, Lyft, DoorDash, and Uber’s stocks dropped by 10%, 7%, and 6% respectively. Some see this as a buying opportunity, as in the immediate, rideshare will bounce back with an open economy. In addition, a national ruling on gig workers may be better than a “patchwork” of state laws where some states are more stringent. Walsh is a former union leader and this may just be the beginning of lots of new policies.
FINSUM + Magnifi: Tech is rallying right now off of great earnings reports. This will likely be a temporary dip until real legislation is in the pipeline, but tech companies with fewer gig workers might be safer.
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