Some breaking news sending food delivery names like Uber and DoorDash

lower. Our Deuter Bosa has more in today's tech check.

A. D.

Hey Carl, so those Gig Economy stocks they are hitting session lows after

Uber, Doordash, and Grub Hub say they are suing New York City over a new minimum

wage law. Now even though they're going on the offensive fighting a law that

would significantly raise their costs.

This is also reminding investors of their complicated relationship with their drivers who are classified

remember as independent contractors, not as employees.

And it's also reminding them of the many other regulatory battles

that these companies are fighting in a number of states and countries.

Now in the case of this law in New York City which goes into effect next week July 12th

it requires the gig delivery players to pay its drivers a minimum $70.96 an hour.

That is up from the current average of just $7 an hour. So that amounts

guys to a near tripling of base pay for the more than 60,000 food delivery workers in New York, and it comes just as some of them are

finding their footing.

Uber, of course, narrowing its losses this year, and in the last quarter generating

positive free cash flow, it is up some 70% this year, Dash is up 50, share gains have been driven by these

improving financials but both as I always note remain below their IPO

prices so the question still being asked years on from those IPOs, are these good disruptive businesses?

Or are they essentially utilities with a regulatory problem, guys?

Still a question that plagues them.

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