Some Lyft drivers will receive up to $10,000 in cash bonuses so they can buy shares in the company's IPO

Madeline Stone / Business Insider

• Lyft will provide some of its drivers cash bonuses to purchase stock in the company's upcoming IPO, according to its S-1 filing on Friday.
• Lyft drivers who have completed 10,000 rides will receive a $1,000 bonus, and those who have logged at least 20,000 trips will get $10,000.
• Drivers will have had to complete their rides or have been apart of the advisory council by February 25, 2019 in order to be eligible.
• Drivers can choose to either keep the cash, or use the funds to buy Lyft shares at its IPO listing price.

Lyft will provide some of its drivers cash bonuses that they can use to purchase stock in the company's upcoming IPO, according to its S-1 filing on Friday.

Lyft drivers who have completed 10,000 rides will receive a $1,000 bonus, and those who have logged at least 20,000 trips will get $10,000. Also, those who have served on the company's Driver Advisory Council - a group that provides driver feedback to Lyft employees - will receive $1,000.

Drivers can choose to either keep the cash, or use the funds to buy Lyft shares its IPO listing price. Bonuses are expected to be paid out by March 19, 2019, the company says.

Read more: Lyft kicks off 2019 unicorn IPO spree with public S-1

Drivers will have had to complete their rides or have been a part of the advisory council by February 25, 2019 in order to be eligible for the bonus. They also must be "in good standing" with the company.

Typically, only high-powered company directors or investment firms are given access to purchase shares at a company's listing price, so Lyft's decision may turn out be a lucrative one for eligible drivers.

Lyft drivers, though the backbone of the ride-sharing platform, are classified as contractors. And while it's typical for venture-backed companies like Lyft to issue restricted stock grants to full-time employees at the time of their hiring, it's rare to allow contractors to benefit from an IPO.

The Wall Street Journal first reported rumors of the program on Thursday. Uber will reportedly offer similar cash-bonuses to its drivers as well.