Lyft and Uber tank after Post report on hiring freeze at Lyft

Lyft shares tumbled in pre-market buying and selling on Wednesday following The Publish’s report that it had applied a hiring freeze — and Uber wasn’t spared from the ache. 

Shares of Lyft had been down 3.2% whereas Uber had fallen 1.2% about an hour earlier than the market was set to open on Wednesday morning. They inched increased nearer to the bell. 

The inventory slumps got here after The Publish completely reported late Tuesday that Lyft was freezing all hiring till the top of 2022. 

“Like many different firms navigating an unsure financial system, we’re pausing hiring for all US-based roles by way of the top of the 12 months,” Lyft spokesperson Ashley Adams mentioned.

Uber mentioned in Might that it was slowing hiring and tightening its belt to climate an financial downturn, however has not introduced a full hiring freeze. Nonetheless, Wall Avenue typically evaluates Uber alongside Lyft because the firms have related companies. 

In Might, each Uber and Lyft introduced plans to gradual — however not freeze — hiring. Lyft additionally laid off a number of dozen workers in its automotive rental division in July.

Strikes by the businesses to trim company headcount don’t have an effect on drivers as a result of the businesses classify them as contractors slightly than workers. 

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