(Bloomberg) — GoTo will give away thousands of shares to each of 600,000 drivers as part of its $1.1 billion Indonesian initial public offering, setting a precedent for Southeast Asia’s sharing economy.
Drivers who registered with the ride-hailing and delivery app between 2010 and 2016 will get 4,000 GoTo shares, equivalent to $94 based on the IPO price of 338 rupiah.
Those who registered from 2017 to February will get 1,000 shares, part of a total pool of more than $20 million allocated for drivers, according to a statement on Monday.
GoTo, formed through the merger of Gojek with e-commerce pioneer Tokopedia, raised $1.1 billion in one of the world’s biggest stock debuts this year and is slated to list in Jakarta April 11.
While the giveaway represents a token amount, GoTo becomes the first major sharing-economy giant in Southeast Asia to include part-time gig workers in its own IPO windfall.
“It’s an acknowledgment that our driver-partners are part of our success,” Chief Executive Officer Andre Soelistyo said in an interview.
“This is something we’ve wanted to do since the beginning.”
The mobile boom has minted an unprecedented number of billionaires from Alibaba Group Holding Ltd.’s Jack Ma to Sea Ltd. founder Forrest Li.
Yet app-based gig-economy companies are typically built on the backs of low-wage contract workers, who work long hours but continue to lack employee benefits like health care or a safety net.
Their plight has gained regulatory and public attention in recent years, particularly during the pandemic when internet platforms flourished but social inequities widened.
Singapore and other governments around the world are considering legislative changes to protect gig-economy workers.
Uber Technologies Inc. and Lyft Inc., which went public in 2019, gave frequent drivers cash to buy stock in the U.S.
But the practice in Asia is rare.
South Korean e-commerce firm Coupang Inc. promised staff and frontline workers about $90 million worth of restricted stock. Goto’s rival Grab Holdings Ltd. — which went public via a merger with a blank-check company in December — handed out rewards equivalent to $1.4 million to drivers and merchant partners in Indonesia ahead of its listing.
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GoTo’s drivers, who aren’t classified as employees but independent contractors, may choose to hold the stocks or cash out after an initial eight-month lock-up period, according to the company’s prospectus.
The “Gotong Royong” share grant to drivers is part of a broader program that includes merchants, consumers and employees.
Loyal merchants and consumers of Gojek and Tokopedia got priority access when ordering GoTo shares during the book-building period. All full-time employees have received equity under the program, according to Soelistyo.
The company had a total of 8,540 staff at the end of July.
The GoTo Peopleverse Fund, formed to allocate stock options to employees over coming years, will own about 9.03% of the company after its listing, surpassing the stakes of the SoftBank Vision Fund and Alibaba, according to the IPO prospectus.
Soelistyo will have a roughly 0.84% stake in GoTo, while Gojek co-founder Kevin Aluwi will hold 0.77% and Tokopedia co-founder William Tanuwijaya, 1.77%.
The company said it’s also set aside more than 9.35 billion shares, valued at roughly $216 million, as an endowment fund to support social and environmental initiatives, reflecting a global trend among tech giants.
Airbnb Inc. created an endowment pool to support its hosts with 9.2 million shares, while Grab announced its own fund last April with an initial capital of $275 million to support its partners.
GoTo is tapping the public market as tech firms are getting battered by a far-reaching equities selloff.
The loss-making company priced 40.6 billion primary shares in a downsized IPO last week. That represents a projected market value of about $28 billion after the offering, compared with the $35 billion to $40 billion GoTo was said to be targeting last year.
“Although the Indonesian stock exchange might not have as deep a pool of capital as the United States or an investor base that understands tech as well, GoTo has built the most complete tech ecosystem in the country and a huge local fan base,” said Joel Shen, head of Asia technology at global law firm Withers LLP.
“That could help to drum up some enthusiasm from retail investors.”
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