- Lyft and Uber will each supply a few of their drivers money to bonuses to purchase inventory of their upcoming IPOs, in keeping with the Wall Avenue Journal.
- Lyft’s program, the small print of which may very well be revealed in a public submitting as quickly as Friday, will impression a minority of its driver, who will get money that they’ll both maintain, or purchase shares with on the IPO itemizing value, in keeping with the report.
- Uber’s program, whereas comparable in fashion, will doubtless attain the vast majority of its three million drivers, the report mentioned.
- Not like full-time workers, Lyft and Uber drivers do not qualify for fairness grants as a part of their compensation. Nevertheless, shopping for inventory on the IPO value will doubtless give these drivers entry to shares at a cheaper price than in the event that they purchased them on their very own after shares begin buying and selling.
Lyft and Uber will each supply some drivers the choice to purchase inventory of their upcoming IPOs, in keeping with the Wall Avenue Journal.
Each firms will supply applications that give their most lively and devoted drivers money bonuses which can be utilized to purchase firm inventory on the itemizing value, in keeping with the report. Since many tech IPOs soar in value on the primary day of buying and selling, it will doubtless give drivers the prospect to buy shares at a cheaper price than if they simply purchased shares on the open market after the IPO.
Each Lyft and Uber supply fairness as a part of their compensation packages for full-time workers. However drivers, whereas the bread-and-butter of each firms companies, are labeled as contractors and haven’t beforehand been eligible for these advantages.
Lyft, which is predicted to publicly file its IPO paperwork on Friday, plans to present $1,000 to drivers who’ve logged 10,000 rides on its platform, in keeping with the Journal. It is as much as the drivers whether or not they maintain the cash or use it to purchase shares, and solely a minority of its drivers will qualify, the report mentioned.
Drivers who racked up 20,000 rides on Lyft are eligible for $10,000, in keeping with the report.
Uber, whose IPO is predicted to occur later this 12 months, remains to be understanding the small print of its driver inventory program, although it expects to supply some type of bonus to most of its three million lively drivers, the report mentioned
SEE ALSO: Lyft may very well be price $5 billion greater than its most up-to-date non-public valuation — this is how you can value the ride-hailing firm on public markets
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