Urban Company has announced an industry-first Partner Stock Ownership Plan (PSOP) for its service providers.
What is PSOP?
Under this plan, the company will award stocks worth Rs 150 crore to thousands of service partners over the next 5-7 years.
The company will set up an evergreen trust to manage the PSOP plan, and award them at near zero cost to service partners.
It company has already got board approval for the first tranche of Rs 75 crore worth of stocks, to be disbursed over the next 3-4 years.
Gig workers become shareholders
The company will set up a fair and meritocratic process to grant these stocks, taking into account both the performance of service partners and their longevity on the platform. The entire process will be rule-based and transparent, with an advisory panel providing overall guidance.
Raghav Chandra, Co-Founder of Urban Company said, “Urban Company’s Partner Stock Ownership Plan (PSOP) will help thousands of service partners become shareholders of the company, thereby enabling broad-based wealth creation through equity sharing. This is perhaps the first of its kind plan globally, where gig workers become shareholders of the very platform they work with. This will allow our service partners to benefit from the company’s growth in the coming years. This PSOP plan underscores our commitment to empower service partners and treat them as equal stakeholders in the company building journey.”
Abhinav Chaturvedi, Partner with Accel, and an investor and board member of Urban Company said, “Over the years, Urban Company has put in many programs such as up-skilling, training, group insurance coverage, personal loans, vaccination support, etc. to empower the service professionals on its platform. The PSOP plan is a step forward in this direction for partners to financially benefit from the value created on the Urban Company platform.”
