Urban Company rolls out Rs 150 crore partner shareholding plan
The company will implement a meritocratic process for allocating shares, taking into account both the performance of service partners and their longevity on the platform
Urban Company rolled out the partner shareholding plan (PSOP) for its service providers on Wednesday. Under the plan, the company claims to award shares worth Rs 150 crore to thousands of service partners over the next five to seven years. The company will set up an evergreen trust to manage the PSOP plan and award them at near zero cost to service partners. Urban Company has already secured board approval for the first tranche of shares worth Rs 75 crore, to be disbursed over the next three to four years.
Urban Company’s PSOP will help thousands of service partners become shareholders in the company, enabling large-scale wealth creation through equity sharing, said Raghav Chandra, co-founder of Urban Company. “This is perhaps the first plan of its kind in the world, where gig workers become shareholders in the very platform they work with. This will allow our service partners to benefit from the growth of the company. years to come. This PSOP plan underscores our commitment to empowering service partners and treating them as equal stakeholders in the journey of building the business,” he added.
The company will implement a meritocratic process to allocate these stocks, taking into account both the performance of service partners and their longevity on the platform. The whole process will be rules-based and transparent, with an advisory committee providing overall guidance. According to Abhinav Chaturvedi, Partner of Accel and Board Member of Urban Company, over the years Urban Company has implemented many programs such as skills enhancement, training, insurance coverage groups, personal loans, vaccination support, etc. service professionals on its platform. “The PSOP plan is a step in this direction so that partners benefit financially from the value created on the Urban Company platform”, he underlined.
According to the latest UC Earnings Index, Urban Campany claims that partners who delivered at least 30 orders per month earned Rs 30,455 per month, with the top quartile of partners earning Rs 38,263 per month.
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