Indonesian e-commerce giant GoTo said it will distribute about 920 million Series A shares to its 600,000 driver partners after a successful initial public offering (IPO) on the Jakarta Stock Exchange on March 31 and raised $1.1 billion . The scheme, called “gotong royong” or “mutual aid,” is a first for the e-commerce industry in Southeast Asia and will give out 4,000 GoTo shares to every Indonesian driver who registered between the company’s inception in 2010 and December 2016, when registered in January Drivers will receive 1,000 shares in 2017 and February 2022. Based on the IPO price o 338 rupiah, the value of each share allocation…
Indonesian e-commerce giant GoTo said it would distribute about 920 million Series A shares to its 600,000 driver-partners. successful IPO (IPO) listed on the Jakarta Stock Exchange on March 31, raising $1.1 billion.
The scheme, called “gotong royong” or “mutual aid,” is a first for the e-commerce industry in Southeast Asia and will give out 4,000 GoTo shares to every Indonesian driver who registered between the company’s inception in 2010 and December 2016, when registered in January Drivers will receive 1,000 shares in 2017 and February 2022.
Based on the IPO price of IDR 338, the value of the corresponding share allocation will be approximately IDR 1.4 million (approximately USD 98) and 338,000 IDR (approximately USD 24) per driver, respectively. According to a company statement, the total allocation will be worth 310 billion rupiah ($21.6 million).
Independent Driver Rewards
“It’s a recognition that our driver partners are part of our success,” GoTo CEO Andre Soelistyo said, adding “it’s something we’ve wanted to do from the start.”
According to the company’s prospectus, GoTo’s drivers are not employees but independent contractors who can choose to hold stock or cash out after an initial eight-month lock-up period, which lasts until the end of November. The program includes Gojek drivers working for GoRide, GoCar, GoSend, GoFood and GoBox services in Indonesia. Due to local regulations, Gojek drivers in Singapore and Vietnam are not eligible to apply for shares and will instead receive cash.
GoTo is the first major sharing economy company in Southeast Asia to include part-time gig workers in its IPO windfall. While the industry has made their founders rich, the app-based so-called “gig economy” is often built on low-wage contract workers who work long hours but still lack things like health care or safety nets Employee Benefits.
Also applies to business, employee shares
The GoTo stake grants to drivers are part of a broader program that includes company merchants and employees. Loyal merchants and consumers of Gojek and Tokopedia get priority access when ordering GoTo stock during the reservation build period. Under the program, all 8,540 full-time employees received equity.
The company said it also set aside more than 9.35 billion shares, worth about $216 million, as an endowment fund to support social and environmental initiatives.
