|Bid||46.10 x 1300|
|Ask||46.15 x 1100|
|Day's Range||46.02 - 46.99|
|52 Week Range||43.41 - 88.60|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||73.22|
Back in May, Uber drivers in Los Angeles went on strike to demand better conditions: (SOUNDBITE) (English) ORGANIZER AND ACTIVIST, PETER YOUNG, SAYING: "The amount of money you are taking home at the end of the week has consistently been getting lower and lower and lower and, you know, everyone has a breaking point, right?" Late Tuesday they had a victory to celebrate. The California state senate passing a bill, dubbed AB5, that makes it harder for firms like Uber to classify workers as contractors, rather than employees. That will give the drivers stronger employment rights. The measure has been closely watched, partly thanks to support from several Democratic presidential candidates. Elizabeth Warren, Bernie Sanders and Kamala Harris are all backers. Uber and rival Lyft are strongly opposed. Last week they proposed a ballot referendum to exempt ride-hailing companies from the bill. On Tuesday Lyft said it was ready to take the matter to California's voters. Right now though, it's the workers celebrating. The question for the ride hailing apps is whether other states - and other countries - will follow California's lead.
WeWork's rocky road to the public markets is indicative of what's going on in with problematic, overblown tech IPOs in general.
Presented by Winston & Strawn LLP and ICR Inc. While Wall Street groaned over the struggles of Uber Technologies, Inc., Lyft, Inc., and WeWork parent The We Company in recent months, a cousin of the traditional IPO has flourished, often delivering a healthy exit for private owners and strong aftermarket trading for public […]
An Uber driver in California is wasting no time seizing upon a new law passed by the state legislature Wednesday that could reclassify ride-hailing drivers from independent contractors to employees.
(Bloomberg) -- Facing the most serious threat yet to its business model, Uber Technologies Inc. is dusting off a legal argument it has employed with mixed results: that it’s a technology platform, not a transportation company.Now, as a new California law threatens to upend its source of cheap labor, Uber is pointing to the ways in which it has attempted to diversify — into food and freight delivery, for example — to put a polish on the argument that its drivers are still independent contractors peripheral to its higher mission.“Drivers’ work is outside the usual course of Uber’s business, which is serving as a technology platform for several different types of digital marketplaces,” Tony West, the company’s chief legal officer, said in an interview with reporters Wednesday.Uber has generated billions of dollars from the labor of its drivers without the expense of treating them as employees. California is poised to disrupt that business model, and the ride-hailing behemoth is gearing up for another legal fight.Under Assembly Bill 5, which has cleared both houses of the California Legislature, workers in the gig economy would be entitled to a minimum wage and workers compensation if their duties are in the usual course of a company’s business.The idea that drivers are not core to Uber’s business is one that elicits indignation from critics, but the company has long relied on a version of this argument in attempts to avoid treating drivers as employees. It lost one such ruling in 2016, when a U.K. judge batted down the claim with a very cheeky retort: “The lady doth protest too much.”Proponents say the California bill, which has the support of Governor Gavin Newsom, will bring a groundbreaking shift to finally give workers their due. Uber and its allies say that if the bill becomes law, it may not meaningfully change the business model because there are still questions about which workers qualify.“AB 5 doesn’t all of a sudden -- magic wand -- change everybody’s status to employee,” said West. Instead, new criteria would be used to determine whether workers are employees or contractors, he said. “Now, whether or not we win under that test in California remains to be seen.”Skeptics say Uber may be too optimistic. While it’s used arbitration, litigation and settlements to thwart drivers’ attempts so far to be classified as employees, AB 5 could pose a significant risk to the company, especially if similar measures are adopted in other parts of the U.S., legal experts, academics and financial analysts say.Uber is “whistling past the graveyard” if it underestimates how much AB 5 would favor drivers, said Jason Lohr, an employment lawyer in Uber’s hometown of San Francisco. Most of the state’s legal community expects the drivers would be considered employees, requiring Uber to provide worker-compensation insurance like any other employer, he said.“If Uber balks, it will be a bonanza for personal-injury attorneys because the company will be presumed negligent when a driver is injured -- and on the hook for attorney’s fees for failing to provide coverage,” Lohr said.Rising CostsIncreased labor costs will likely mean higher fares for riders, which could undermine the growth strategies for Uber and its chief rival, Lyft Inc., said Tom White, an analyst at D.A. Davidson in New York.“Some of the data we’ve seen suggests that in order for ride-sharing to be a suitable replacement for car ownership, prices have to come down, not go up,” White said. “That part of the story gets eroded somewhat if Uber is forced to increase prices in a material way.”Uber shares are down about 25% from an initial public offering in May, which valued the company at about $78 billion. The stock already reflects concern over the California law, which may face obstacles, including a ballot measure funded by Uber and other companies, White said.“The market generally anticipates there being a headline about AB 5 being signed,” White said. “But I think there’s still some question as to whether that necessarily means that it’s enforced before the two sides hash something out.”The governor’s office has helped facilitate discussions between unions and the companies about offering drivers certain benefits but not employee status. The talks, which have been ongoing since last year, haven’t resulted in a compromise. Without a breakthrough, Newsom’s support of the bill indicates it’ll be signed into law.As AB 5 gained support in Sacramento, Uber complained that other industries had successfully lobbied to have their workers exempted from the law, from hair stylists and travel agents to dog groomers and engineers.Gig-economy companies also protested a provision giving California’s attorney general or city attorneys the ability to prosecute companies and block their operations if they mis-classify employees as independent contractors.‘Weaponizes’ LawThe provision “effectively weaponizes” AB 5 and could result in technology companies being “arbitrarily targeted with lawsuits and injunctions,” Uber, Lyft and six other companies said in a letter to Newsom and lawmakers.If AB 5 is signed into law, as Uber expects, the company is prepared to return to a familiar venue -- the courtroom -- to make its point that its drivers are “independent individuals,” West said. Part of that legal argument, he said, is that Uber considers itself a technology platform, not a transportation company.Under the new law, for its drivers to be considered independent contractors, they must perform work “outside the usual course” of the company’s business. Uber’s biggest business is ride hailing, but it also has created platforms for restaurant-meal delivery and freight trucking, and the company is working on new services.Uber is “connecting individuals with a work opportunity,” West said. “When courts understand that, they realize that drivers are not involved in the usual core business of Uber -- because Uber is a technology company that operates a marketplace.”(Updates with Uber executive quote in the third paragraph.)To contact the reporter on this story: Joel Rosenblatt in San Francisco at email@example.comTo contact the editors responsible for this story: David Glovin at firstname.lastname@example.org, Steve Stroth, Mark MilianFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Shares of ride-hailing companies Uber Technologies Inc. and Lyft Inc. gained amid news that California’s governor was still open to negotiating with the firms regarding possible exemptions from new legislation that could force the gig economy giants to reclassify their workers as employees.The Wall Street Journal reported earlier on Wednesday that California Governor Gavin Newsom remained personally involved in talks with Uber, Lyft and other gig economy companies. Newsom told the Journal that he was “committed, at least, to continuing those negotiations,” in an interview on Tuesday.Under the new law, called Assembly Bill 5 and passed by the California Senate, people in California could generally only be considered contractors if the work they’re doing is outside the usual course of a company’s business. Complying with the new rules would mean companies like Uber and Lyft would have to consider their drivers employees, entitled to a minimum wage and overtime pay - neither of which is a common protection within the gig economy.While the passage of the bill is a “clear financial negative,” Wedbush analyst Daniel Ives said he expected that ultimately a more middle-ground approach will be settled on as the companies will reduce hiring and the flexibility of its workforce in California, “offsetting the positive protection measures drivers will get.”“If per driver costs in California go up by about 30%, but Uber/Lyft impose shifts, and raise the hurdle to onboard a driver (thereby limiting training and other costs), it should limit the overall impact,” Ives wrote in a note to clients.Uber shares gained as much as 4.9%, and Lyft jumped as much as 8.1%. GrubHub Inc. stocks also rose 2.6%.In a note to clients last week, Deutsche Bank analyst Lloyd Walmsley noted that the shares of ride-hailing companies have recently taken a hit due to concerns around the California regulations, and called it an “overreaction.”(Updates shares, adds Wedbush comments in fourth and fifth paragraphs.)To contact the reporter on this story: Esha Dey in New York at email@example.comTo contact the editors responsible for this story: Brad Olesen at firstname.lastname@example.org, Steven FrommFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
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.
(Bloomberg) -- The California Senate passed a bill that could force Uber and other gig economy giants to reclassify their workers as employees. Such a change would secure labor protections for thousands of people across the state and deal a significant blow to companies that built multi-billion dollar businesses on independent contractors.Under the new law, Assembly Bill 5, people in California could generally only be considered contractors if the work they’re doing is outside the usual course of a company’s business. Companies like Uber Technologies Inc. and Lyft Inc., which rely on armies of drivers to service their customers, would likely fail that test without transforming how they do business. Employees are entitled to a minimum wage and overtime pay, neither of which is a common protection within the gig economy.Governor Gavin Newsom, a Democrat who’s seen as friendly to both labor and technology, has said he supported the bill, a signal that it may soon become law without a special exception for the gig economy. The State Assembly has already approved a version of the bill and it’s expected to pass the same legislation in a later vote.The cost could be significant and comes at a delicate moment for the two largest companies in the industry. Lyft and Uber are struggling to staunch accelerating losses and cratering stock prices. Just hours before the bill passed, Uber Chief Executive Dara Khosrowshahi said he was cutting more than 400 technical employees after eliminating a similar number of jobs earlier in the summer.Shares in Uber were down about 1% in New York Wednesday morning while Lyft was up less than 1%.“The State Senate made it clear: your business cannot game the system by misclassifying its workers,” Assemblywoman Lorena Gonzalez, the Democrat who authored the bill, said in a statement. “As lawmakers, we will not in good conscience allow free-riding businesses to continue to pass their own business costs onto taxpayers and workers. It’s our job to look out for working men and women, not Wall Street and their get-rich-quick IPOs.”Read more: Uber Has Bigger Problems to Worry About Than the D.C. ShutdownGiving employee status and benefits to workers in California would cost Uber and Lyft an additional $2,000 to $3,600 per driver annually, according to research from Barclays Plc and Macquarie Capital. That would be as much as $500 million for Uber in the state each year. California often sets the legislative tone for other states to emulate, and the costs could quickly add up if more follow suit.The largest companies in the gig economy have been trying unsuccessfully since last year to secure concessions that would forestall a reclassification of their workers. The companies appealed to state lawmakers to shield them from the new standard and have held talks with union leaders and the governor’s office.“We are now witnessing the dashing of the American dream,” Senator Jim Nielsen, a Republican, said on the Senate floor.Read more: Uber Makes Further Cuts to Its Staff as Losses Pile Up (1)Corporate efforts to secure a legislative deal may continue past the current legislative session, which ends this week. Meanwhile, gig companies are also setting up a fallback. Uber, Lyft and DoorDash Inc. each committed $30 million last month to potentially put the issue before voters as a 2020 ballot referendum.The California showdown has become the leading battleground in the U.S. debate over the rights of gig workers. Several Democratic presidential candidates endorsed the California bill and are backing proposals that would replicate the approach on a national scale.“The passage of this legislation could be a watershed in the reduction of inequality in society and the workplace,” said William Gould, Stanford University law professor and former National Labor Relations Board chairman. “Some of this depends upon the willingness of organized labor, plaintiffs lawyers and government to stand up and protest. On this, we must wait and see.”(Updates with shares in fifth paragraph)To contact the reporters on this story: Josh Eidelson in Palo Alto at email@example.com;Lizette Chapman in San Francisco at firstname.lastname@example.orgTo contact the editors responsible for this story: Mark Milian at email@example.com, ;Peter Elstrom at firstname.lastname@example.org, Edwin ChanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
WeWork Parent We Co. may have made some positive steps to clean up its act as its IPO got into trouble, but a close look at changes to a recent SEC filing reveals some problems with profitability that are tough to remedy. That's according to IPO Edge Editor-in-Chief John Jannarone, who told Cheddar TV that […]
What's next for the Fed and increased corporate bond buying. Apple's (AAPL) highly anticipated event Tuesday. Aurora Cannabis (ACB) earnings. A California bill could shake up Uber (UBER) and Lyft (LYFT). And why Ciena (CIEN) is a Zacks Rank 1 (Strong Buy) stock right now - Free Lunch
After a surge in lawsuits from ride-hailing passengers who say they were sexually assaulted by their driver, Lyft on Tuesday announced efforts to roll out new app features designed to enhance customer safety.
Mallinckrodt, Uber, Lyft, PG&E and Alibaba are the companies to watch.
The troubled IPO of WeWork parent We Co. can still be completed but the company needs to make more significant progress allaying investors concerns. That’s according to Nick Mazing, Director of Research at Sentieo, a leading AI-enabled financial research and workflow platform. In an interview with IPO Edge, he also draws a comparison between WeWork and […]
Talk about a horrendous trade by millennials. Here's new data from online brokerage house TD Ameritrade revealing top stocks bought by millennials in August.
September could prove to be a big month for ride-hailing companies as California lawmakers are expected to vote on a bill that will have a big impact on whether drivers in the state are considered employees.
By John Jannarone Under heavy fire from Wall Street, WeWork parent We Co. has made some serious tweaks to its planned IPO. It’s added a female board director, CEO Adam Neumann returned a few million dollars for a questionable trademark, and the offer price has reportedly been slashed. But there’s another change to the latest […]
For every Beyond Meat, Inc. or Zoom Video Communications, Inc. that has held gains far above IPO pricing, there are those in pain such as The RealReal, Inc. or Lyft, Inc. But defensive plays in traditionally boring sectors have shown some astounding strength that could continue into the fall. That's according to All Star Charts, […]