What's Going On With Gig Companies Uber, Dash Thursday?
Portfolio Pulse from Anusuya Lahiri
Uber Technologies, Inc (UBER) and DoorDash, Inc (DASH) are suing New York City to block a new law that sets minimum wages for food-delivery workers. The companies argue that the new per-minute trip rate could be significantly higher than the minimum wage set for other industries, leading to multiple apps paying a worker for the same hours. They also claim that the new metrics would force them to raise consumer fees in New York City to offset costs and limit the number of workers who could work for each app, hurting gig workers’ flexibility.
July 06, 2023 | 3:34 pm
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NEGATIVE IMPACT
DoorDash is suing NYC over a new law setting minimum wages for food-delivery workers. The company claims this could lead to higher consumer fees and limit gig workers' flexibility.
The lawsuit against NYC could lead to increased operational costs for DoorDash if they lose, which could negatively impact their profitability and stock price. Additionally, the negative publicity could harm the company's reputation, potentially leading to a decrease in stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Uber is suing NYC over a new law setting minimum wages for food-delivery workers. The company claims this could lead to higher consumer fees and limit gig workers' flexibility.
The lawsuit against NYC could lead to increased operational costs for Uber if they lose, which could negatively impact their profitability and stock price. Additionally, the negative publicity could harm the company's reputation, potentially leading to a decrease in stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100