Urban Company on Wednesday rolled out partner stock ownership plan (PSOP) for its service providers. Under this plan, the company claims to award stocks 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 got board approval for the first tranche of Rs 75 crore worth of stocks, to be disbursed over the next three-four years.
Urban Company’s PSOP will help thousands of service partners become shareholders of the company, thereby enabling broad-based wealth creation through equity sharing, Raghav Chandra, co-founder, Urban Company, stated. “This is perhaps the first of its kind plan globally, where gig workers become shareholders of the very platform they work with. This will allow our service partners to benefit from the company’s growth in the coming years. This PSOP plan underscores our commitment to empower service partners and treat them as equal stakeholders in the company building journey,” he added.
The company will set up a meritocratic process to grant these stocks, taking into account both the performance of service partners and their longevity on the platform. The entire process will be rule-based and transparent, with an advisory panel providing overall guidance. According to Abhinav Chaturvedi, partner, Accel, and board member, Urban Company, over the years, Urban Company has put in many programs such as up-skilling, training, group insurance coverage, personal loans, vaccination support, etc. to empower the service professionals on its platform. “The PSOP plan is a step forward in this direction for partners to financially benefit from the value created on the Urban Company platform,” he highlighted.
As per the latest UC Earnings Index, Urban Campany claims that partners who delivered at least 30 orders a month, earned Rs 30,455 per month, with the top quartile of partners earning Rs 38,263 per month.
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