Ride-hailing companies Uber Technologies and Lyft will give some of their drivers a chance to participate in their initial public offerings, The Wall Street Journal reported Thursday.
The report, which cites people familiar with the matter, said both companies will include programs to give long-serving and highly active drivers a cash award with the option to convert it into stock. This is unusual since ordinary investors usually are not able to buy a company’s stock at its IPO price and because the drivers are contract employees.
More specifically, Uber’s plan would give some drivers either a cash bonus or the option to use that money to buy shares at the IPO price, the report said. Lyft, meanwhile, would give drivers with 10,000 rides logged in $1,000 they can keep or use to participate in the company’s IPO. Lyft drivers with at least 20,000 rises would be eligible for $10,000 in cash or a stock equivalent.
Uber and Lyft’s IPOs are two of the most-anticipated public offerings in recent years. Lyft plans on launching its roadshow during the week of March 18, Reuters reported last week. Roadshows are followed shortly after by the IPO itself. Uber is expected to also go public later this year.
Neither Uber nor Lyft responded to CNBC’s request for comment.