UBER AND LYFT DELAY THEIR PLANS TO LEAVE MINNEAPOLIS AFTER OFFICIALS PUSH BACK DRIVER PAY PLAN
AppleMagazine|April 19, 2024
The ride-hailing companies Uber and Lyft said they will delay their planned exit from Minneapolis after city officials decided to push back the start of a driver pay raise by two months.
UBER AND LYFT DELAY THEIR PLANS TO LEAVE MINNEAPOLIS AFTER OFFICIALS PUSH BACK DRIVER PAY PLAN

The Minneapolis City Council voted unanimously to implement the ordinance on July 1 instead of May 1. Some council members said this gives other ride-hailing companies more time to establish themselves in the market before Uber and Lyft potentially leave, and it gives Minnesota lawmakers a chance to pass statewide rules on pay for ride-hailing drivers.

Council member Robin Wonsley, the lead author of the ordinance, said the delay would lead to better outcomes for drivers and riders, and lay a stronger foundation for a more equitable ridehailing industry statewide. She called the current industry model "extremely exploitative." Under the ordinance, ride-hailing companies must pay drivers at least $1.40 per mile and $0.51 per minute — or $5 per ride, whichever is greater - excluding tips, for the time spent transporting passengers in Minneapolis.

The change aims to ensure companies pay drivers the equivalent of the city's minimum wage of $15.57 per hour after accounting for gas and other expenses. However, a recent study commissioned by the Minnesota Department of Labor and Industry found that a lower rate of $0.89 per mile and $0.49 per minute would meet the $15.57 goal.

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