Shares of Uber Technologies Inc and Lyft Inc jumped in premarket trading on Wednesday, as Wall Street cheered the app-based firms' projected victory in their battle to set the terms of the gig economy they have helped create.
Voters in California backed a ballot proposal by Uber and its allies that cements app-based food delivery and ride-hailing drivers' status as independent contractors, according to a projection by data provider Edison Research.
Uber's shares rose 12%, while Lyft jumped 16%. The companies, along with DoorDash, Instacart and Postmates, have collectively poured more than $205 million into the campaign.
The ballot measure, known as Proposition 22, marks the culmination of years of legal and legislative wrangling over a business model that introduced millions of people to the convenience of ordering food or a ride online.
After Edison made the projection, state figures showed 58% in support of the measure, with nearly 95% of precincts at least partially reporting. The results are incomplete and must also be certified.