When Juno began recruiting Uber drivers in New York City early last year, it gave them a choice: They could either take about $100 in cash or begin to accumulate stock. The equity, the company explained, would give drivers the chance to share in the wealth if the business was successful. Juno said it was setting aside half the company’s initial stock for its drivers.
For a fleeting moment, it seemed like the workers who took the stock were in line for a windfall. Gett Inc., a Tel Aviv-based ride-hailing company, said Wednesday it was buying Juno for $200 million. But drivers were soon informed by emails from Juno that the stock plan was void. They could instead receive cash payouts amounting to less than what they could make in a day of driving.
It’s a stunning reversal for Juno, whose strategy was based entirely on being the driver-friendly alternative to Uber Technologies Inc. and Lyft Inc. The company takes a lower commission than Uber or Lyft and often portrayed its plan to offer equity as part of a deeply held philosophy. “We defined our core values, and we said it’s all about respect, kindness, fairness and transparency,” Talmon Marco, the […]