Uber, Lyft and DoorDash react to Biden's gig worker rule

Uber, Lyft and DoorDash – companies that rely heavily on gig workers – reacted Tuesday to the Biden administration's proposed rule about classifying workers as regular employees versus independent contractors.

The Department of Labor announced Tuesday it would be publishing a proposed rule this week that would change the government's guidance on how workers are classified as either employees or gig workers. The department said the rule is meant to help prevent the misclassification of employees in industries such as home care, construction, delivery and restaurants.

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"The Department of Labor listened to drivers, who consistently and overwhelmingly state that they prefer the unique flexibility that comes with being an independent contractor," CR Wooters, head of federal affairs at Uber, told FOX Business. "Today's proposed rule takes a measured approach, essentially returning us to the Obama era, during which our industry grew exponentially."

It is "crucial" that the Biden administration "continues to hear from the more than 50 million people who have found an earning opportunity with companies like ours" amid a "time of deep economic uncertainty," Wooters said, adding Uber "look[s] forward to continued and constructive dialogue with the administration and Secretary [Marty] Walsh as this process progresses."

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Meanwhile, Lyft said in a blog post that the proposed rule has "no immediate or direct impact" on the ride-share company's business at this time. 

The rule – which Lyft said was "expected on day one" of the Biden administration – does not reclassify the company's drivers as employees or force its business model to change, according to the company. Like its competitor Uber, Lyft noted that the rule is "similar to the approach the Obama administration used to determine employee status."

The company said it would "continue to advocate for laws like the one in Washington state which gives workers what they want: independence plus benefits and protections."

DoorDash believes its delivery drivers are "properly classified" under the proposed rule, the online food ordering company said in a statement. 

"While this is just the first step in the process, we do not anticipate this rule causing changes to our business model or to Dashers' status as independent contractors," DoorDash said. "We will continue to engage with the Department of Labor, Congress, and other stakeholders to find solutions that ensure Dashers maintain their flexibility while gaining access to new benefits and protections."

Ticker	Security	Last	Change	Change %
UBER	UBER TECHNOLOGIES INC.	70.27	+0.67	+0.96%
LYFT	LYFT INC.	16.66	-0.10	-0.63%
DASH	DOORDASH INC.	173.66	+1.46	+0.85%

Both Lyft and DoorDash highlighted surveys in which a majority of their drivers expressed support for remaining independent contractors and retaining their work flexibility.

The CEO of Flex Association, a trade organization representing app-based platforms, also weighed in on the proposed rule.

"Millions of app-based workers choose this work because of the flexibility it provides," Kristin Sharp, Flex's CEO, said in a statement. "They overwhelmingly prefer to preserve their ability to choose when, where and how often they work. As this process continues, we will ensure that the Department of Labor continues hearing the voices of these earners, and will work to ensure that any final rule protects the independence they need."

The proposed rule, set to be published Thursday, will be open to comments from interested parties until Nov. 28. 

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