July 22, 2017

For Juno, being the anti-Uber comes at a price

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Image: Courtesy of Gett

RIDE ALONG: Marco at first lured Uber drivers to Juno by offering better terms, such as a lower company commission off their earnings. When Juno launched last spring , the e-hail newcomer’s marketing pitch was that it would be nicer to its drivers than Uber. It would take a smaller cut of their fares, have a 24-hour help line and even issue them shares in the company.

Juno’s approach to equity-sharing fueled its growth, but the plan blew up in its face last month, when fellow e-hail operator Gett bought the company for a reported $200 million in an all-stock transaction. Drivers were told they could cash in their stock for pennies per share, fueling accusations of betrayal and a sense that Juno was just as bad as its rivals.

Juno is not discussing the deal, but there may be a simple reason why the payouts were minuscule—and why the sale happened. And it shows just how much money it takes to compete against Uber in New York’s brutally competitive ride-hail world, where discounts for customers and incentives for drivers drain cash in a race for market share.

Juno was thought to have had $10 million on hand before raising $30 million […]

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The News for the Gig Economy Staff is constantly searching the web for the latest news regarding freelancing and gig platforms to bring them to you in one handy place. All articles with this generic author have been sourced with the original location at the bottom of the piece. We encourage our readers to view the original source of all excerpts. NGE is a project of ARC Online, LLC.

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