Juno prepares to issue equity to its drivers
Ride-hail platform, Juno was launched in New York in February this year, promising to take on Uber by being a “fairer, more equitable alternative” and offering equity to anyone who drives for at least 120 hours on the app per month. So far 11,000 drivers have signed up, and each will receive their share of the pledged total one billion shares, via the issuance of 25 million “restricted stock units” to drivers each quarter, beginning with the quarter that ended on 30 June. Additionally, drivers will still only have to give the platform 10% of their fares, less than half the 25% claimed by Uber and Lyft, and have the chance to become employees if they work exclusively for Juno, or continue as independent contractors if they want to spread their working hours across other platforms.

When ride-hail startup Juno came out of stealth in February of this year it did so with an unusual premise: an offer of equity to anyone who signed up to drive for the company. Now, 5 months later, it is preparing to deliver on that pledge. Next week Juno will begin issuing promises of equity to drivers, the company confirmed to BuzzFeed News.

For Juno, which claims to have registered 11,000 drivers so far, the equity offering to drivers is a grand gesture with which to position itself as a fairer, more ethical alternative to Uber and Lyft; a company which intends to do right by the drivers on which it will build its business.

“Every time somebody goes into an Uber, they’re compromising their values,” Juno co-founder Talmon Marco told BuzzFeed. “ I want them to think of Juno as a company that’s a blend of great service but at the same time, socially responsible.”

In addition to pledging to allocate 1 billion shares to drivers, Juno takes a 10% cut of their fares – less than half the 25% claimed by Uber and Lyft. It also says it will offer drivers the option of being independent contractors or employees if they are willing to work exclusively for Juno, something Uber and Lyft — which have both been sued over worker classification issues in the U.S. — have so far refused to do.

Juno says it will issue 25 million “restricted stock units” or RSUs to drivers each quarter, beginning with the quarter that ended on June 30. Each RSU is bound by vesting and liquidity restrictions that dictate when and under what terms it can be sold. Juno plans to give eligible drivers shares based on the fares they've completed, minus tolls. Then the company will determine a subset of top drivers, who will receive bonus RSUs, to prorate the 25 million shares. The company declined to provide BuzzFeed News the agreement it will send drivers for its RSU grants.

For drivers to be eligible for Juno's stock plan, they must log a minimum of 120 hours on the app monthly. And they must remain active on the app for “24 out of 30 months” for the RSUs they're granted to vest. Juno’s founders hold 1 billion shares; The company says that within 10 years drivers should hold an equivalent number.

