As rideshare drivers, our job is pretty straightforward: drive, earn money, go home. But what if driving for Uber or Lyft also meant you were improving your own bottom line in the long term – via stocks? By turning drivers into (somewhat) owners of Uber/Lyft, would that incentivize drivers more? Senior RSG contributor Christian Perea explores the possibilities of Uber/Lyft offering drivers stock.
On October 11th, Uber sent a letter to the Securities and Exchange Commission arguing that drivers should be allowed to receive Uber stock the same way its employees do under an exemption to SEC rule 701(e). This letter was obtained by Axios and sparked some intense interest among drivers eager to receive some compensation in the company they helped build to a speculated $120 billion valuation.
Before we get excited as drivers, we should consider how Uber could divvy up a meaningful amount of shares for its 7.5 million drivers without diluting the positions of existing shareholders, all of whom want to protect their gains.