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Uber, Lyft to offer driver ‘ s shares to listing on a stock exchange: WSJ

(Reuters) – Ride-hailing companies Uber and Lyft to offer cash bonuses for a number of the most active or longest-serving directors, together with the chance to get them in shares of their long awaited stock market launch, the Wall Street Journal reported on Thursday.

FILE PHOTO: the Uber logo is displayed on a mobile phone in London, great Britain, September 14, 2018. REUTERS/Hannah Mckay/File Photo

The newspaper said Uber Technologies Inc. was the schedule of such prices for a “major” part of the 3 million drivers, with the cost likely to run into the hundreds of millions of dollars.

Under Lyft Inc plans, drivers who are at least 10,000 rides on the platform will receive $1,000 and those who have signed up and 20,000 rides as much as $10,000, the paper said.

They would then be able to use the money to buy shares in its initial public offering at the first price of the widely expected to happen this year, cited people familiar with the matter as saying.

The conditions mean that only a minority of the Lyft drivers are eligible, the report said.

Uber declined to comment, and Lyft does not immediately respond to emails requesting comment.

A number of media have reported that in the last two years that Uber was looking on the giving of shares to directors but faced with opposition from regulators, because they are considered contractors instead of employees.

Wall Street analysts have calculated Lyft could be valued at between $20 billion and $ 30 billion in the IPO, and Uber around $120 billion.

Shares in high-profile companies often surge immediately after the debut, offering those who register for the first round of the shares of the chance at a bigger price.

Lyft, the roadshow is expected to start in the week of March 18, Reuters reported earlier this month.

Reporting by Aparajita Saxena in Bengaluru

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