Tag Archives: Juno

Drivers For Ride-Hailing App Juno Claim Company Misled Them With Promises Of Stock

Last year, drivers for ride-hailing apps like Uber and Lyft were excited about a new competing app, Juno, which promised to grant drivers stock in the company along with lower commissions and in-app tipping. Juno was recently acquired by yet another service, Gett, and the drivers have seen their equity evaporate, leading them to file a complaint with federal regulators.

The plan for Juno was to share more revenue with its drivers than rivals do. Retaining drivers is important, as it cuts down on costly expenses associated with recruiting new drivers, like referral fees and sign-on bonuses.

A source familiar with the startup’s finances told Bloomberg Technology that Juno was profitable, but unable to convince investors to help it expand to more cities. Instead, the company decided to pursue a deal with Gett, a ride-hailing app out of Israel which operates in multiple cities, including New York.

gett

Drivers acquired theoretical equity in Juno the more that they drove, and the plan was that drivers would own about half of the company by 2026. Gett, which paid $200 million to acquire Juno, has no such equity plan, which meant the end of the stock program.

Drivers learned in an email that they would receive a small cash payment, about 10% of what drivers had been told their accumulated stock was worth.

That’s where the Independent Drivers Guild, a group that’s not a union but represents New York City’s drivers with Uber, comes in. To maximize their time and income, drivers for ride-hailing apps often work for multiple services at once, accepting passengers as they come in. According to the group, 40% of its members also drive for Juno.

While the Independent Drivers Guild represents drivers for Uber in New York City, its members often drive for Juno as well. Yet Uber pays some of the group’s administrative expenses, which makes it a little awkward when the IDG is calling for the Federal Trade Commission to investigate one of Uber’s competitors.

Uber itself Uber paid $20 million to settle charges that it misled prospective drivers about what their pay would be.

In its letter to the FTC [PDF], the IDG says that it learned from mysterious “sources” that Juno had learned from the Securities and Exchange Commission that its stock plan may be illegal. Yet, the IDG alleges, that was a few months before the deal, and the company still used the idea of earning equity in the company to appeal to new drivers.

“Many IDG drivers have no access to traditional worker protections like retirement plans, group health insurance, or even paid time off,” the IDG notes in its letter. “The promise of a stake in the company attracted thousands of drivers seeking financial security for their families.”

The group also sent the letter to New York state’s attorney general, New York City’s Office of Labor Policy and Standards, Juno, and Gett.

Source:

Drivers For Ride-Hailing App Juno Claim Company Misled Them With Promises Of Stock

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Driver-friendly ride-hailing apps Gett and Juno are combining

Ride-hailing app Gett today confirmed that it will acquire Juno, another app in the on-demand transportation industry, for $200 million, reports TechCrunch. The deal will combine Juno’s network of New York City-based drivers under Gett’s and continue to offer drivers a 10 percent commission rate while giving them 100 percent of tips. (Uber’s commission ranges between 20 to 25 percent.)

Juno launched in New York City just one year ago, and initially pitched itself toward drivers, not riders. It promised to be a more “ethical ride-sharing app,” offering drivers $50 a week to keep the app open during normal work hours and a rating system that deducted 5 percent of their lowest ratings on a weekly basis.

In light of recent press around Uber’s shady business practices, consumers have been rapidly switching to competitors like Juno, Lyft, and Gett. Just a few days after the #DeleteUber campaign began in January, Lyft surpassed Uber in app downloads for the first time ever. Gett also reported that in the last quarter, its revenue and rides completed grew 100 percent.

Gett currently services 100 cities worldwide, including New York, Tel Aviv, London, and Moscow. Its acquisition of Juno aims to help it further expand in the United States.

Source:

http://www.theverge.com/2017/4/26/15436222/gett-acquires-juno-driver-friendly-ride-hailing-apps