Uber asks the SEC to let it give company stock to drivers

[Shawn Knight]

Why it matters: Uber and other gig economy specialists have indeed changed how millions of people work. The fact that workers are independent contractors and not actual employees, however, has long been scrutinized and criticized. Should legal changes be made to accommodate and compensate these new forms of work?

Uber is petitioning the Securities and Exchange Commission to reconsider its stance on compensatory securities offerings to reflect the “changing nature of work by individuals in the entrepreneurial economy.”

In other words, Uber wants to be able to compensate its drivers using company stock.

For a business with traditional employees, compensation through stock offerings wouldn’t be a problem. But in the case of Uber and others that participate in the gig economy, the fact that workers aren’t technically employees of the company but rather, independent contractors, complicates matters.

In Uber’s letter, obtained and shared by Axios, the company argues that providing equity to partners would allow them to share in the growth of the company and could lead to enhanced earning and saving opportunities.

How people work is changing, Uber notes, and they’d like the commission to modify its rules to reflect these alternative work arrangements.

This isn’t the first time Uber has discussed the matter with the SEC nor is it the first company to do so. Airbnb last month also sent a letter asking the SEC to revise Rule 701 of the Securities Act to allow it to issue stock to its “most loyal hosts.”

Even if successful, additional changes would be needed as it relates to tax law.

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https://www.techspot.com/news/76904-uber-asks-sec-give-company-stock-drivers.html

 

[Theinsanegamer]

"How people work is changing, Uber notes, and they’d like the commission to modify its rules to reflect these alternative work arrangements."

The way people work is changing because companies like Uber dont want to pay them decent wages, they'd rather have minimum wage slaves to do their bidding.

If uber wants to give their drivers stock, they need to be made employees, full stop. If you want the benefits, you need to pay the price for them, no free rides. If uber wants to keep them as contractors, it cant give out stock.

 

[Uncle Al]

It is a good idea on one very specific provision. Company profits will be split between the stock holders on a equal amount-per-share to insure that the investors get a fair break. They could run it like a REIT but this should be set down in law and not allow the Chair and Board Members to selectively direct dividends; all to insure fair play for everyone.

 

[MasterMace]

If Uber gives stock to drivers, then every driver would be required to receive proper taxi licensing. SEC should put in that mandate as a requirement to even hear about offering the stocks.

 

[captaincranky]

Yeah right, Uber stock for dinner again dear?

So, would Uber drivers have to sell their stock before they can buy food?

Unless I missed something, that's the way this article reads.

In the past, many companies have had "profit sharing", along with employees getting a paycheck.first.