Uber, Lyft slump as US proposal on workers a potential blow to gig economy

The US Labor Department's proposal will require workers to be considered a company's employees when they are 'economically dependent' on the company

Shares of Uber Inc, Lyft Inc and Doordash Inc fell about 10% on Tuesday on fears that a U.S. proposal to deter companies from treating workers as independent contractors would raise costs for the barely profitable firms.
 

The U.S. Labor Department's proposal will require workers to be considered a company's employees - who are entitled to more benefits and legal protections than contractors - when they are "economically dependent" on the company.
 

Analysts said there is a lot of uncertainty around the proposal expected to come into effect next year, but the move was "a clear blow to the gig