Uber and Lyft to offer drivers access to their IPOs
Some Uber and Lyft drivers will get either a cash bonus or access to company stock.
Uber and Lyft are giving a huge bonus to long-term drivers: access to their eagerly awaited IPOs. The ridesharing companies are offering the option of either cash or company stock.
How much Uber and Lyft stock can drivers get?
The ridesharing corporations are offering stock options to some of their employees because the companies because that is standard for many corporations. Since Lyft announced it was filing for an IPO and was valued between $20-25 billion, the company has been making plans to distribute stock to long-term drivers.
Uber filed for an IPO after Lyft and expects to be valued at $120 billion. Though Uber and Lyft drivers are considered independent contractors and not salaried employees, they are offering different options to drivers.
Lyft will reportedly offer drivers who have completed 10,000 rides will be offered $1000 that can be a cash bonus or used to buy Lyft shares. Employees who have logged 20,000 rides could be given $10,000 in cash or stock value.
Uber’s IPO deal will likely be more complicated because it has more drivers and operates in many more countries. Because of international laws, long-term drivers may only be able to take cash instead of stock.
Should drivers take Uber and Lyft stock or cash?
Though stock options of billion-dollar companies could be lucrative, many drivers may opt for the cash bonus instead of Uber and Lyft stock. Harry Campbell, creator of the Rideshare Guy blog, explains that employees are more likely to take the money because they tend to need the cash sooner to pay for gas and other expenses.
‘Most drivers are on a pretty tight budget, so I think it will be tempting for them to take the cash bonus,’ said Campbell.
Whether they get cash or stock, some Uber or Lyft drivers will get a very rewarding bonus from the ridesharing companies.
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