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Stock Alert: Lyft Up 11% After California Voters Approve Proposition 22

Shares of Lyft Inc. (LYFT) gained over 11% on Wednesday morning after as California is set to pass the ride-hail services' drivers status as independent contractors.

LYFT is currently trading at $29.20, up $2.97 or 11.32%, on the Nasdaq.

California voters on Tuesday approved a proposition, which allows drivers of app-based transportation and delivery companies such as Uber and Lyft to be classified as independent contractors rather than employees.

The proposition entitles drivers to new benefits like minimum earnings and vehicle insurance, but disqualifies them from benefits granted to employees. The proposition exempts Uber and Lyft from state labor law.

California is the biggest market for Uber and Lyft.

Lyft along with Uber, DoorDash, Instacart and Postmates, collectively spent over $205 million into the campaign.

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