UBER - Why did Uber shares fall 10% Tuesday? A Biden Administration proposal cuts deep

• Uber ( NYSE: UBER ) was left by the curb, Tuesday, as investors drove the ride-sharing giant's shares tumbled more than 10% due to uncertainty over potential changes in the employment status of the company's drivers.
• At issue was a proposal from the Biden Administration that would require the likes of Uber, it's top rival, Lyft ( NASDAQ: LYFT ) and other companies to classify so-called "gig economy" workers and regular employee instead of independent contractors.
• In a statement, U.S Labor Secretary Marty Walsh said the problem with misclassification of workers is that it "deprives [them] of their federal labor protections, including their right to be paid their full, legally earned wages."
• Uber ( UBER ) has in many ways become the poster child for the gig economy, as it has maintained that its drivers are independent contractors with the freedom to choose when they work and set their own work schedules.
• Last week, RBC analyst Brad Erickson said Uber's ( UBER ) advantages in the ride-sharing market as one of the reasons why he cut his rating on Lyft ( LYFT ).

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