BofA says state top court hearing Prop 22 appeal not positive for gig industry

BofA analyst Michael McGovern notes that the Supreme Court of California granted review of Castellanos v. the State of California after appeal, which will result in another round of briefings, oral arguments, and ultimately a decision on Prop 22 at the state supreme court level, which the firm says is “not a positive” for the gig industry. The state supreme court agreeing to review the appellate court decision creates a possibility that the positive outcome from earlier this year could be changed, but even in a downside scenario whereby the court ruled unfavorably for the gig companies, the impact would be somewhat limited as California’s share of gross bookings is likely only about 8% for Uber (UBER), 15%-20% for Lyft (LYFT) and 10%- 15% for DoorDash (DASH), the analyst tells investors.