Uber Stock (NYSE:UBER) Soars After Securing Prop 22 Win

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Shares of Uber Technologies, Inc. (NYSE:UBER) traded up 10.57% in the pre-market trading session after the company won the most expensive ballot contract in history. California voters have supported the ballot proposal by Uber and its allies.

The measure is known as ‘Proposition 22’ which addressed the rights of app-based drivers. It was supported by some of the most powerful tech companies and became the most expensive and important campaign in state history. Lyft, Uber, Instacart, Postmates, and DoorDash have invested more than $205 million in the campaign. Some transport companies earlier decided that they would close their services in California if they lost.

But they all secured the major victory today. After the approval of Proposition 22, app-based drivers are now independent contractors, not employees or agents. This proposition will also address the new wage policies specific to app-based drivers and companies.

58.35% of Californians have voted in favor of proposition 22, and 41.65% of voters were against the proposition. Transport companies disclosed that this new move will help app-based drivers to choose when and how they work.

This new initiative helps app-based drivers to provide delivery services through an online application of business. They will be allowed to use a personal vehicle to give prearranged transportation services for compensation via a business’s online-enabled application or platform.

Uber, Lyft, and DoorDash have invested $30 million into campaign accounts to fund a ballot initiative on August 30, 2019. Opponents of this new proposition said that the new move will exploit the right of the workers. Companies are trying to avoid the employee-related costs that could cost $392 million to Lyft and Uber.

Uber Technologies, Inc. (NYSE: UBER) shares were trading up 11.97% at $40.05 at the time of writing on Wednesday. Uber Technologies, Inc. (UBER) share price went from a low point around $13.71 to briefly over $41.86 in the past 52 weeks. UBER market cap has remained high, hitting $63.91 Billion at the time of writing.

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