Lyft/Uber - what's the catch with so much RSUs ?

Apr 27, 2018 84 Comments

Hi.. am about to start interviewing at Lyft. It looks like the RSUs offered by Lyft are incredulous - most offers i see these days are around ~1.2+ Million.

I hear even if you leave before IPO, they hold the vested RSUs for you for around 7 years. They also give a decent base.. not great but not bad either.

Given all this, what's the catch ? Shouldn't everyone from Google/fb mad rush to interview there ? Surely theyd IPO in a couple of years and then you have potential to be Mr.Scrooge level rich... Unlike most other startups where it's not really worth joining unless you joined in the first couple of years..

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TOP 84 Comments
  • Uber / Other
    Workhorse1

    Go to company page Uber Other

    Workhorse1
    If Lyft IPOs anytime in the near future they’ll plummet after the first public earnings call when investors realize how much they spend on buying market share (rather than tech or infrastructure).

    They’re essentially a marketing company. They burn all their cash on buying market share from Uber in the form of driver incentives and rider promos. Also those pink ads you see in airports as you’re ordering your Uber.
    It was Groupon’s strategy - how did that turn out for them? #Groupon2.0

    If you opt for those million RSUs from Lyft, you’ll need to wait a decade or more to be Scrooge rich if ever
    Apr 27, 2018 19
    • Uber
      EpDc08

      Go to company page Uber

      EpDc08
      All the best to Lyft. Healthy competition makes for better product. 😊

      But, based on recent public evaluation information, it’s worth noting that the stake Uber got in Didi for “getting kicked out of international markets” looks to be worth more than Lyft itself. That’s from one investment, made four years ago. As an investor, that looks good to me.

      But +1 on your brand insinuation. There’s definitely a lot of room for Uber to bridge the gap between how our brand is perceived vs how much most of us actually care. We’ll get there.
      May 16, 2018
    • Yelp
      CapJerk

      Go to company page Yelp

      CapJerk
      @poo poo
      Reaching 50 soon
      Jun 4, 2018
  • Google / Eng
    OAGb68

    Go to company page Google Eng

    OAGb68
    I was given an offer from uber when the rsu was valued at $48, and hr told me with confidence that the price would easily get doubled in 6 month because they were growing at a pace no one had ever seen. Should've lost big if i believed her. If you want more evidences, look at snap, zynga, groupon, zenefits...

    Its definitely a good opportunity to join these companies at this moment. I've seen very positive cases as well. But overall you might not make much more, at least not as you would expect, as compared to staying in FANG, given the uncertainty, worse benefits, refreshes, and tc increases. Also experiences in FANG are better valued, which can help in the long run.
    Apr 27, 2018 4
  • Uber
    Qwertj

    Go to company page Uber

    Qwertj
    $1.2m are roughly starting Staff offers at Lyft/Uber. L6 are outliers. Certainly not “most” offers.

    Plus, someone who can get Staff at F/G can get a comparable amount anyway but it’s liquid.
    Apr 27, 2018 9
  • Cisco
    KeyPeele

    Go to company page Cisco

    KeyPeele
    Glad someone has the same question as I did!

    I always thought that only the founding members of the team got those many options.
    Apr 27, 2018 1
  • GE
    DigiThal!

    Go to company page GE

    DigiThal!
    I wonder whether these two companies become profitable. Their self driving cars reality is 10 to 15 years away. These two companies have to swim through expected downturn in two years from now. In a downturn no one think about using their services. It seems risky and these RSUs can go worthless. The MIT article said drivers see immediate cash and they get an illusion that they are making good profits using these services. In reality if they consider maintenance, depreciation, wear and tear they make only $5 per hour. I am skeptical about the value of these RSUs.
    Apr 28, 2018 3