Despite a drivers strike, Uber seeks to woo investors ahead of IPO
The ride-hailing service plans to go public, following the lead of Lyft, which started trading on Nasdaq on March 29. The labor action—held today in major cities—is more bad news for Uber.
Ahead of its IPO, Uber is trying to downplay the growing rift between the company’s leaders and its drivers—including today’s strike.
The stock issue promises big money for investors, but drivers who aren’t classified as employees are unlikely to see any reward. That, coupled with what some drivers describe as unfair and unsafe work conditions, has led many drivers to stand down for the day.
Organizers called for drivers and riders to turn off their apps and find alternative modes of transportation on May 8. The strike is occurring in major cities including London, New York, Chicago and Los Angeles.
The work stoppage comes at a crucial time for ride-hailing companies Uber and Lyft, both of which are trying to convince investors that they are worth billions of dollars in valuation. Lyft’s stock has fallen dramatically since its IPO in late March, leaving many to question Uber’s high value.
Both companies claim they treat workers well and tout big dollar figures when describing compensation for drivers, but the drivers say they aren’t getting a fair shake.
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