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Let me propose another analysis which shows this is perfectly fair. The founders created a company which delivers value by connecting over 1 million rides a da
by marcell 8y ago
Let me propose another analysis which shows this is perfectly fair.
The founders created a company which delivers value by connecting over 1 million rides a day. Those riders benefit from Lyft. Additionally, riders on Uber benefit from lower prices due to competition. The IPO profits to the founders and investors are their reward for delivering this value.
If you assume each ride has $1 of consumer surplus, then they are delivering over $350M a year of consumer surplus a year.
As for the employees, first of all they all received base salary and benefits. They may not receive millions in the IPO, depending on when they joined, but that is the risk of working at a pre-IPO company. They all had the option to work at Google for a more predictable income.
- mattmanser 8y agoThis sort of nonsense is why there's such a gap growing between the rich and the poor. It sounds logical, but it's in fact just another way of a few marginally deserving people taking a disproportionate amount of the proceeds of a group effort.
- marcell 8y agoReally? I can’t think of a more empowered group today than software engineers. You can work at a large company and get predictable compensation. Alternately, you can work at a startup with the promise of a multi million dollar IPO. I’m each case, you can leverage multiple offers to negotiate higher compensation in equity or salary. If neither of those appeals to you, you can start your own company. There are ideas that generate predictable income comparable to a day job, or you can go for your own start up home run. If you think the Lyft founders are undeserving, then go out and start your own Lyft!