Uber Technologies Inc is set to introduce a compensation initiative that would grant its most active drivers cash incentives and the opportunity to purchase shares during the company's initial public offering (IPO).
The program, which mirrors a similar structure implemented by rival Lyft, will allocate rewards based on drivers' tenure and total mileage logged on the platform.
Reuters reported that Uber is developing a stock-based compensation plan that would provide approximately 3 million drivers with cash bonuses redeemable for shares at IPO pricing. Drivers in jurisdictions with securities regulations restricting share purchases will receive only the cash component.
Lyft's existing framework offers drivers who complete 10,000 rides a $1,000 bonus, with those reaching 20,000 rides eligible for up to $10,000. Recipients may choose to retain the funds as cash or apply them toward IPO share purchases.
