The cofounder of Viber is hoping to poach Uber drivers by offering them equity in his new taxi app
Getty Images
Talmon Marco - who set up WhatsApp competitor Viber in 2010, before selling it to Rakuten for $900 million (£627 million) in 2014 - confirmed in February that he is behind stealth transportation startup Juno.
He told the FT that Juno is specifically targeting Uber drivers with high ratings by offering them lower commission rates and equity.
"What Uber left out in the process of building their company is that they completely and totally forgot about the people who do the work, the drivers," said Marco. "Imagine a company where all the employees hate management; that is not a good place to be."
Uber drivers have been protesting in cities like San Francisco and New York over fare cuts that were introduced in January.
In New York City, base fares went to $2.55 (£1.77) from $3 (£2.09), per-mile rates dropped $1.75 (£1.22) from $2.15 (£1.50), and the per-minute rate went to $0.35 (£0.24) from $0.40 (£0.28). In all, Uber X and Uber XL riders saw their total fares drop by 15%.
Lyft, another Uber rival, has been keeping drivers happy with its tip system, in addition to lower commission rates for full time drivers. Uber's commission structure was changed last week to reflect Lyft's, the FT writes.
Marco, who told the FT Juno has already raised tens of millions but refused to reveal the exact amount, said he would classify full-time Juno drivers as employees, not contractors like Uber does. He is proposing that Juno shares are allocated to staff each quarter. Over time, they could build as much equity as the founders, according to the FT.
- Some Tesla factory workers realized they were laid off when security scanned their badges and sent them back on shuttles, sources say
- I tutor the children of some of Dubai's richest people. One of them paid me $3,000 to do his homework.
- India not benefiting from democratic dividend; young have a Kohli mentality, says Raghuram Rajan
- Indo-Gangetic Plains, home to half the Indian population, to soon become hotspot of extreme climate events: study
- 7 Vegetables you shouldn’t peel before eating to get the most nutrients
- Gut check: 10 High-fiber foods to add to your diet to support digestive balance
- 10 Foods that can harm Your bone and joint health
- 6 Lesser-known places to visit near Mussoorie