Uber and Lyft gain $13 billion in combined market value after Californians approve Prop 22

• Uber shares rose as much as 18% and Lyft shares jumped as much as 22% on Wednesday after California voters approved Proposition 22.
• The ballot measure's passage means the ride-hailing companies can continue to classify their drivers as independent contractors instead of employees, exempting them from Assembly Bill 5, a state labor law passed last year.
• Uber's stock-price increase added as much as $11 billion to its market capitalization, while Lyft's gain boosted its market value by as much as $1.8 billion.
• Uber, Lyft, DoorDash, and other "gig economy" companies spent more than $200 million in support of Prop 22, making it the most expensive ballot-measure campaign ever in California.
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Uber and Lyft shares jumped on Wednesday after California voters flashed the green light for the ride-hailing companies to continue classifying their drivers as independent contractors instead of employees.

Uber stock surged as much as 18%, while Lyft stock soared as much as 22%. The price increases added as much as $11 billion to Uber's market capitalization, and $1.8 billion to Lyft's market value.

About 6.6 million votes, or 58% of the total, were cast in favor of Proposition 22, according to the New York Times.

The ballot measure's passage exempts the pair from Assembly Bill 5, a state labor law passed last year that threatened to classify their drivers as employees, forcing the companies to pay a minimum wage and provide unemployment benefits and health insurance.

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Uber, Lyft, Instacart, Postmates, and DoorDash shelled out more than $200 million in support of "Prop 22," making it the most expensive ballot-measure campaign in California's history. The "gig economy" companies argued that AB5 would dramatically impact their business models and some even threatened to leave the state in protest.

Prop 22 will require Uber and Lyft to provide some benefits to their drivers, such as vouchers to access subsidized health insurance and minimum hourly earnings, but not as many as under AB5. Proponents argued the ballot measure would retain the flexibility that many drivers value, while critics framed it as a way to exploit workers and reduce employee costs.