Uber, Lyft shares tumble on possible change in work practices
US authorities are looking at protecting the rights of Uber and Lyft employees with a view to moving them to a full-time employment status.
While this may work for a proportion of employees, drivers often use Uber and Lyft work as infill employment and any change may impact on their relationships with the companies.
(Video Transcript)
Uber and Lyft shares tumble
Shares of the ride hail app companies, Uber and Lyft both tumbled in yesterday's session after the US Department of Labor proposed a new rule that would make it more difficult for companies like this to treat workers as independent contractors.
Share price charts
Let's take a look at where we are in terms of the all-session stock in Uber.
Yesterday, this blue dotted line is the initial public offering (IPO) price at $45. Yesterday we saw the stock move almost 11% down at $24.65 and Lyft was another one on the way down where we saw some hefty losses there.
But more significantly, this blue dotted line up here is the IPO price of $72. It fell to $11.30 below this line of support which takes it to a new all-time record low.
Now if the new proposal would become law workers would be considered employees entitled to more benefits and legal protections that unprotected contractors.
A 45-day public comment period will begin on Thursday and the final ruling is expected next year.
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