Lyft, the popular ride-hailing company, said it plans to pay drivers a bonus and that they could use the cash to buy shares in its IPO.
Lyft filed paperwork with the Securities and Exchange Commission on Friday to list its shares on the NASDAQ stock exchange, an IPO that could come as early as next month. The San Francisco-based company reportedly could raise as much as $100 million in the listing.
In a separate press release Friday, Lyft said it would pay drivers bonuses of as much as $10,000, money that could be used to buy shares in the company at the IPO price. The bonuses are expected to be paid by March 19.
Lyft will pay a cash bonus of:
- $1,000 to drivers in good standing who have completed at least 10,000 rides but fewer than 20,000 rides on its platform as of February 25, 2019;
- $10,000 to drivers in good standing who have completed at least 20,000 rides on its platform as of February 25, 2019; or
- $1,000 to drivers in good standing who are serving on, or who have served on, its Driver Advisory Council as of February 25, 2019.
As part of this program, drivers will receive only one bonus, which will be the largest bonus for which they are eligible. These bonuses are expected to be paid to eligible drivers on or about March 19, 2019.
The company's IPO filing said that it had 1.9 million drivers as of 2018. It wasn't immediately clear how many would qualify for bonuses.
Lyft's IPO is the first of an expectedexpected this year.