According to a new report from The Wall Street Journal, the cab-renting service Uber and Lyft are planning to allocate some cash bonuses to their drives so that they can invest in the company’s shares through the upcoming IPO of those companies.
There has been a lot of discussions about the role of a driver in a transport company and most of the times those drivers are not recognised as the full-time employees of that company. Also, under the rules of the Securities and Exchange Commission (SEC), those companies are not allowed to grant those drives a share of the stocks, directly, in the company.
Although many times several laws have been trying to put those drivers into the full-time employee category, companies like Uber and Lyft regards the drivers as individual contractors. Now the two companies are planning to offer those drivers who have been a part of their team for a longer time with rewards, such that they would be able to buy a share of the stakes in the IPO of those companies, before shares to begin trading on public stock exchanges.
According to the reports, Lyft will be granting the drivers, who have completed 10,000 rides, with $1,000 and the driver who have completed over 20,000 rides will get $10,000. It will be the choice of the drivers if they want to keep the money or put the money towards IPO-priced shares.
On the other hand, there is no hint from Uber over the amount of reward money. Although there has been no confirmation from Lyft as well, and the money value can be changed depending upon the situation.
Uber had been talking about offering a part of the shares of the company to its drivers since 2016, and last year, in May, the Uber CEO Dara Khosrowshahi also announced that the company was planning to provide extra benefits and rewards to its drivers. Uber has also started free tuition fee and insurance programs for the drivers working for the company.
Noticeably, both Lyft and Uber are ready to debut on the Nasdaq for their IPOs. It is expected that Lyft between $20 billion and $25 billion in its IPO, and Uber may reach $120 billion in the IPO. Lyft and Uber will be putting hundreds of millions of dollars toward the reward program for its drivers so that they would be able to invest during their IPOs.
Yashica is a Software Engineer turned Content Writer, who loves to write on social causes and expertise in writing technical stuff. She loves to watch movies and explore new places. She believes that you need to live once before you die. So experimenting with her life and career choices, she is trying to live her life to the fullest.