Investing.com - Ride hailing companies Uber (NYSE:UBER) and Lyft (NASDAQ:LYFT) rose in midday trade on Wednesday after a Wall Street Journal report that the California governor was still in talks with the gig-economy giants over employee designation.
Uber rose 4.7%, while Lyft surged 7% after the news.
California proposed a law this week that would force companies to reclassify some contract workers as employees. The bill is expected to be approved by Friday.
Governor Gavin Newsom said he wants to make a deal with Uber (NYSE:UBER) Uber, Lyft and other gig companies over the status of their drivers as they seek an exemption from the bill, the WSJ reported.
“As it relates to Uber, Lyft, DoorDash, others, some of the gig platforms, these remain ongoing negotiations, and regardless of what happens with (the propsosed law), I am committed, at least, to continuing those negotiations,” Newsom told the paper.