Amidst the growing concerns over fare rates, the question of Lyft and Uber stock options has gotten some good traction. There are a great many drivers who have floated the idea of rideshare stock options for drivers. Benefits and higher pay are the primary rallying call for drivers these days, and a stock option could soothe the tension. However, neither company has even hinted at stock options for drivers.
After some thought I considered the question, should drivers invest their hard-earned money in Uber or Lyft?
Without a stock option program, should drivers invest?
Many drivers are strapped for cash as it is. Some are looking for other opportunities to earn more through Uber. Barely making ends meet doesn’t mean you’ve got extra cash to go and throw away on a company that told you to take a hike, right? Well, maybe not.
Both Uber and Lyft have experienced disappointing IPOs. When you throw in concerns about the fact that Uber and Lyft are both loss-making machines thus far, and stock confidence is not high —at all.
The wiseguys say no but…
According to a recent article on Investor Place, the consensus is that for day-traders and wall-street buffs it’s a no. But, should Uber and Lyft drivers consider doing it? The general rule of thumb, albeit as ancient as they come, is to buy low and sell high. Now, Uber and Lyft both had disappointing openings in their IPOs. Remember when rideshare drivers went on strike the same day that Uber debuted on the stock market?
Fortunately for these two companies, they’ve rebounded a few times over the last couple of months, but both continue to be volatile. I myself have put in a few pennies into both companies and have watched them closely. My initial assessment is that if you have the extra cash, why not get in now while they are down?
Uber and Lyft both resemble the Facebook IPO…
Both companies are rideshare giants and tech companies to boot. If we look back at the Facebook IPO, it faltered but has since recovered and grown steadily. However, Facebook was massively profitable, whereas both Uber and Lyft seem to be sinking under the weight of their business models. So, can you trust to put your money into such a volatile offer? Quite simply no, but if you are a driver, your future is utterly uncertain as it is. So what do you have to lose?
Lyft and Uber stock performance broken down
The wise guys stated that Uber and Lyft’s investments would only hold value for them if they began to exceed the $50 mark.
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Currently, both are valued at Uber for $40 per share and Lyft at $59 per share. Lyft has lost almost 24% of its value this year, and Uber thus far has grown slightly at 4% according to STASH INVESTMENTS the platform I use to invest. If you average the two, the stock price levels out at around $50, so is that a yes?
I’m not a stock guru by any means, but…
My answer is yes, you should, at least for a time. Drivers don’t like to admit that we do have an extra coin or two sitting around. Investing these marginal dollars might seem like a waste right now, but like most good things, growth takes time. Drivers’ futures are uncertain amidst growing concerns that Uber and Lyft both aim to move into the self-driving car business. A future as a full-time driver looks like a weak prospect now, doesn’t it? But, what if you could get in on the wealth now on the cheap?
Invest with STASH App
STASH is a micro ETF investment app that links directly to your bank account. You can use it to invest even $5 at a time into Uber and Lyft. If you’ve had a good week, why not put just five to ten dollars into an ETF investment in Uber and Lyft?
You don’t have to be a stock guru to invest in what you’ve helped build. As long as the drivers are in the seats, we have a fraction of control, and as stock owners, we gain even more. Now is the time— if ever— to start investing in a future return as a driver.