Gig economy

A California bill could upend the gig economy

Photo of car with Uber and Lyft logos in the rain.
Photo: Justin Sullivan/Getty Images

Rivals Uber and Lyft have joined forces, a rare event, to oppose a California legislature bill that would make it harder for them to classify workers as independent contractors in their home state.

Driving the news: A bill that would codify last year's Dynamex decision by the state's Supreme Court passed California's Assembly (51-11) last month and will soon be in the hands of the state Senate. That decision set a new, higher bar for companies that want to pay service providers as contractors rather than employees — a practice that the ride-hailing services' businesses are built upon.

Uber still hasn't regained its IPO price

Data: Money.net, FactSet: Chart: Axios Visuals

Uber on Friday completed its first full week of trading at $41.91 per share, or 6.87% below its $45 per share IPO price and just a touch below its first post-IPO trades of $42 per share.

The bottom line: As the IPO stumbled last Friday, there had been some happy talk that traders would return to Uber after the weekend. They didn't.