Uber, Lyft and DoorDash stocks plunge after Biden’s labor secretary says ‘in a lot of cases, gig workers should be classified as employees’

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U.S. Labor Secretary Marty Walsh said most gig workers should be classified as employees. A couple of gig companies were quick to say Thursday that their workers say they prefer the flexibility that gig work provides.

Shares of Uber Technologies Inc., Lyft Inc. and other “gig-work” companies dropped sharply Thursday after U.S. Labor Secretary Marty Walsh said gig workers should be classified as employees.

Uber UBER, -6.01%, Lyft LYFT, -9.94%, DoorDash DASH, -7.60%, Instacart and Grubhub GRUB, -4.19% treat their drivers and delivery workers as independent contractors who do not have the same pay, rights and benefits as employees. The companies have long fought to preserve their business models. Meanwhile, Piper Sandler analysts said this could be a buying opportunity for Lyft investors as the ride-hailing industry recovers. They also said “Labor costs will probably rise no matter what, and a federal rule is better than a patchwork of state-level laws.”

DoorDash workers “work just four hours per week on average, and that’s exactly why we’re committed to protecting their independence while providing greater security and benefits,” said Elizabeth Jarvis-Shean, a spokeswoman at DoorDash.

 

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Why Walsh is involved in determining gig workers to be classified as employees? It’s up to the Companies!! Why don’t Walsh do something about Federal Mandate on minimum wage? It should be determined at the State Level!! ALL THE SO-CALLED SECRETARIES UNDER BIDEN ARE IDIOTS!

⚠️ Owned by Hedge Funds don't Believe a thing they say want evidence read on and many more articles available ⚠️

I am a DoorDash driver and this is just terrible news.

95% only bad news(

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