Uber drivers to get company stock?
On October 11 Uber applied to U.S. Securities and Exchange Commission for the purpose of granting Uber drivers with company stock. The letter says, “Uber believes that individuals who get work through the entrepreneurial economy should be able to receive securities pursuant to an exempt offering under Rule 701 and also through a registered offering on Form 5-8 from the companies with whom they partner. We believe that this is consistent with the intent and objective of Rule 701 and Form S-8 and, if the Commission were so inclined to determine so, would reflect the modern and changing nature of work.”
The biggest problem for SEC with the above mentioned is that stocks are purely given to employees. It seems like currently Uber is trying to redeem itself after independent-contractor-classification situation and give some benefits to drivers who are in a desperate need of change. Moreover, the company expresses its intention to go public next year, so we will be able to see how it goes.
According to recent info, Wall Street estimates Uber would-be IPO at 120 billion dollars, which is twice as much as two months ago. Sounds promising, especially considering Uber losses. “That could be complicated by Uber’s habit of burning large quantities of cash. The company lost $4.5 billion last year, and has burned through $11 billion since launching in 2009,” states The Verge. No matter what, Uber is considered to be the world’s most valuable startup as of today.
Taking the information stated above into account, provision of Uber drivers with company stock sounds as a step forward towards settling numerous disputes between both parties. Whereas, Uber drivers do not see such changes in a positive light. It seems like they are suspicious of any novelties and wait for no good to come saying that stock can’t pay bills. We will surely hope for the best, since there is a possibility of future having good things in store for drivers.