To end the week, Uber announced its IPO price and that, apparently, got PayPal chomping at the bit. Going public with its initial public offering value, PayPal offered a $500 million investment in the company, at $47 per share. In all, this puts the company at $78.8 billion, which is mid-range for Uber’s original IPO pricing estimate of $44 to $50 per share.
While this information has been confirmed, neither PayPal nor Uber has offered up any other details about the investment. As a matter of fact, it seems that the companies have explicitly agreed to keep a tight lid on the deal with both Uber’s S-1 and a short LinkedIn statement from PayPal CEO Dan Schulman equally wording that the deal will help the two companies strive for “future commercial payment collaborations, including the development of Uber’s digital wallet.”
The deal comes at quite a fortuitous time for Uber, providing the ride-hailing company some healthy padding as it ventures into its public listing. Uber really needs this financial support as it posted a loss of $1 billion in just the last quarter alone. Furthermore, the deal brings Uber closer to one of its many payment partners. And finally, the move is quite significant for PayPal, too, as the digital payments firm works to develop its next stage of its provisional empire.
Another thing that Uber has going for it as they move forward with their IPO, is the fleet. Uber said it will give drivers a change to buy stock before it is available to the general public, quoting that 5.4 million shares have been set aside for a directed-share program. Drivers who qualify for a driver-appreciation program will be able to buy these set-aside shares at the launch IPO price.
Speaking of the driver appreciation program, Uber has also announced that drivers could receive up to $40,000 each in an internal incentive program. Ahead of its IPO, Uber published a Securities and Exchange Commission filing, on Friday, indicating the intention to pay out approximately $300 million to more than one million drivers, worldwide.
Drivers eligible for the program will receive a cash reward based on the number of trips they have completed, starting at $100 for 2,500 trips to $40,000 for 40,000 completed trips. Obviously, the monetary amount will be adjusted according to the driver’s region.