Uber, Lyft stocks rise after resolving Massachusetts settlement

Shares of Uber (UBER) and Lyft (LYFT) are trading higher on Friday after the rideshare companies agreed to offer drivers a minimum wage, paid sick leave, and other benefits as part of a $175 million settlement with the state of Massachusetts.

Josh Lipton and Julie Hyman discuss the settlement's implications for the two rideshare platforms.

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This article was written by Gabriel Roy

Video transcript

Let's check in on some trending tickers.

Now starting off with Uber and Lyft shares of the ride sharing companies rising after both agreed to offer a minimum wage, paid sick leave and other benefits for drivers.

This is all part of a $175 million settlement with the state of Massachusetts specifically.

So this means the drivers in Massachusetts are gonna be getting 3250 an hour.

That's the minimum wage of that settlement.

Uber's gonna pay $148 million of it will the remainder.

But, you know, you've got all these sort of regulatory overhangs in different regions and so this removes one of those.

Yeah, I was reading that most of the funds.

It sounds like you're gonna be, um, it's like they'll be distributed as back pay to drivers, former and current kind of this broader fight.

I mean, all the companies wanna, it sounds like kind of hammer out these deals that give driver benefits but still, you know, kind of classify them as independent contractors.

Yeah.

And is in addition to this, Uber and Lyft are gonna withdraw their support.

There was a, there was a referendum in Massachusetts as well.

That was asking, um, voters there to say yes, indeed.

These folks are independent contractors.

Now, Uber and Lyft aren't going to support that referendum.

It doesn't mean they're not gonna pass but they're not gonna push it as they have been as part of the settlement.

And I was reading that there's actually more news on this front.

I was reading that we're still waiting for a decision from the California Supreme Court about this 2020 voter approved ballot measure that classifies dryers as contractors.

So you got, you got more news on the way there, a lot, a lot going on there.