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.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Sell
Buy
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Sell
Buy
Updated
Change

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Sell
Buy
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
China 300
-
-
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.