Feb 28 (Reuters) – The Uber and Lyft companies that are attracting drivers are planning to offer cash incentives to some of their most active or older drivers, as well as the option of placing them in shares from their launches. stock market, reported the Wall Street Journal Thursday.
According to the newspaper, Uber Technologies Inc. provided such rewards for a "significant" portion of its 3 million drivers, costs can amount to hundreds of millions of dollars.
According to plans by Lyft Inc., drivers who have made at least 10,000 rides on the platform will receive $ 1,000 and those who have recorded 20,000 trips of up to $ 10,000, the newspaper said.
They would then be able to use the money to buy shares at the initial offer price of the company's IPO that is expected to take place this year, the paper quoted people close to the case.
The terms mean that only a minority of Lyft pilots will be eligible, said the report https://on.wsj.com/2NAjKbR.
Uber and Lyft refused to comment.
A number of media outlets have reported over the last two years that Uber was considering giving actions to drivers, but was facing resistance from regulators as they are classified as subcontractors rather than suppliers. as employees.
Wall Street analysts have estimated that Lyft could be valued between $ 20 billion and $ 30 billion during the IPO, and Uber around $ 120 billion.
Stocks of reputable companies often skyrocket immediately after their debut, giving those who subscribe to the first round the chance to get more compensation.
The Lyft roadshow is expected to be launched in the week of March 18, while Uber still needs several weeks to prepare for its IPO, Reuters announced earlier this month.
Lyft gained ground in the United States after a series of scandals at Uber in 2017, including allegations of sexual harassment. Several users and drivers have gone from Uber to Lyft after a #DeleteUber social media campaign.
Uber has since put in place a series of measures to improve its image following accusations of poor driver control leading to incidents of sexual harassment.
In order to improve its often conflicting relationship with drivers, Uber launched in June 2017 a program including a new navigation system, a more accurate approach to performance and options, as well as an opportunity to passengers to leave a tip.
(Report by Aparajita Saxena in Bengaluru, edited by Patrick Graham and Saumyadeb Chakrabarty)