July 25, 2017

Uber is exploring a way to repair its relationship with drivers: equity in the $69 billion company



Uber Sign Over Uber Office, Oak Park, Michigan, May 1, 2017
Copyright: lindaparton / 123RF Stock Photo

Uber drivers could get stock in the company. Robert Galbraith/Reuters

Uber has met with the SEC about the possibility of giving drivers equity in the company, according to an Axios report , citing an anonymous source. Drivers are contractors, not employees, and if the SEC were to agree, it would set an important precedent for other gig economy companies.

For Uber drivers, equity in the fast-growing startup could provide a valuable perk. The privately held ride-hailing company is currently valued at roughly $69 billion and is considered a candidate for what could be a blockbuster IPO in the coming years.

The move comes at a time when Uber is making a big effort to repair what has been a rocky relationship with its drivers.

But there’s no guarantee that Uber will be able to make a driver equity program work.

Ride sharing company Juno attempted to give its drivers stock option, but after complications with SEC regulations granted drivers RSUs instead. When the company sold to Israel based Gett, a statement from the company informed drivers that instead of the RSUs they were originally granted, they would receive a one-time payment that in some cases was as small as $100.With its 180 Days […]

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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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