Shares of Uber Technologies Inc. (UBER) are gaining more than 15 percent or $5.37 in Wednesday's morning trade at $41.14, after touching a new 52-week high of $42.15.
California voters have on Tuesday approved Proposition 22, which allows drivers of app-based transportation and delivery companies such as Uber and Lyft to be classified as independent contractors rather than employees. The proposition entitles drivers to new benefits like minimum earnings and vehicle insurance, but disqualifies them from benefits granted to employees. The proposition exempts Uber and Lyft from state labor law.
Uber, Lyft, Postmates, and DoorDash mainly use contract workers for ride-hailing or food delivery services. California is the biggest market for Uber and Lyft.
Uber has traded in a range of $13.71 to $42.15 in the past 52 weeks.
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