Uber and Lyft shares slump on US 'gig' economy plan - BBC

Shares successful immoderate of the world's largest "gig" system companies person fallen aft the US authorities outlined a program to alteration the mode workers are treated.

Shares successful firms including Uber and Lyft fell by much than 10% connected the news.

Tens of millions of radical enactment successful the planetary gig system crossed services similar nutrient transportation and transport.

US Labor Secretary Marty Walsh said the regularisation would purpose to halt companies from misclassifying workers arsenic autarkic contractors.

Mr Walsh said his section had seen galore cases wherever "employers misclassify their employees arsenic autarkic contractors, peculiarly among our nation's astir susceptible workers."

"Misclassification deprives workers of their national labour protections, including their close to beryllium paid their full, legally earned wages," helium added.

Public consultations for the connection statesman connected Thursday and are scheduled to tally for 45 days.

Uber shares closed 10.4% little successful New York connected Tuesday, portion Lyft mislaid 12% and DoorDash ended down by 6%.

Dan Ives, an expert astatine Wedbush Securities, said the program was "a wide stroke to the gig system and a near-term interest for the likes of Uber and Lyft."

"With thrust sharing and different gig system players depending connected the contractor concern model, a classification to employees would fundamentally propulsion the concern exemplary upside down and origin immoderate large structural changes," Mr Ives said successful a note.

Uber, Lyft and DoorDash did not instantly respond to BBC requests for comment.

Gig system firms person travel nether accrued scrutiny arsenic the manufacture grows successful size.

Payments steadfast Mastercard has estimated that 78 cardinal radical volition beryllium employed successful the gig system by adjacent year.

Gig workers are paid for idiosyncratic tasks, specified arsenic a nutrient transportation oregon a car journey, alternatively than getting a regular wage.

Most US national and authorities labour laws, specified arsenic those requiring a minimum wage oregon overtime pay, bash not use to gig workers.

This came aft 2 erstwhile drivers argued that they should beryllium entitled to the minimum wage and vacation pay.

James Farrar and Yaseen Aslam archetypal took the institution to an employment tribunal successful 2016.

Uber said the ruling centred connected a tiny fig of drivers and it had since made changes to its business.