Some Lyft drivers will receive up to $10,000 in cash bonuses so they can buy shares in the company's IPO

Madeline Stone / Business Insider
  • Lyft will provide some of its drivers cash bonuses to purchase stock in the company’s initial public offering, according to its S-1 filing on Friday.
  • Lyft says drivers who have completed 10,000 rides will receive a $US1,000 bonus, with those who have logged at least 20,000 trips getting $US10,000.
  • Drivers must have completed the required number of rides or been part of the company’s advisory council by February 25 to be eligible.
  • Drivers can choose to either keep the cash or use it to buy Lyft shares at the company’s IPO listing price.

Lyft will provide some of its drivers cash bonuses they can use to purchase stock in the company’s initial public offering, according to the company’s S-1 filing on Friday.

Lyft says drivers who have completed 10,000 rides will receive a $US1,000 bonus, with those who have logged at least 20,000 trips getting $US10,000. Those who have served on the company’s Driver Advisory Council, a group that provides driver feedback to Lyft employees, will also receive $US1,000.

Drivers can choose to either keep the cash or use it to buy Lyft shares at the company’s IPO listing price. Bonuses are expected to be paid out by March 19, the company says.

Read more: Lyft kicks off 2019 unicorn IPO spree with public S-1

Drivers must have completed the required number of rides or been a part of the advisory council by February 25 to be eligible for the bonus. They also must be in “good standing” with the company.

Typically, only high-powered company directors or investment firms are given access to purchase shares at a company’s listing price, so Lyft’s decision could turn out be lucrative for eligible drivers.

Lyft drivers, though the backbone of the ride-hailing service, are classified as contractors. And while it’s typical for venture-backed companies like Lyft to issue restricted stock grants to full-time employees at the time of their hiring, it’s rare to allow contractors to benefit from an IPO.

The Wall Street Journal first reported rumours of the program on Thursday. Uber is said to be planning to offer similar cash bonuses to its drivers as well.

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