Uber and Lyft are withdrawing their services from Minneapolis after the city council passed an ordinance that will increase drivers' pay. Both companies say they will no longer offer ride-sharing services in the city when the ordinance goes into effect on May 1.
Lyft spokesperson CJ Macklin calls the ordinance “deeply flawed,” as it the rates were determined before the state released a study detailing how much drivers would have to be paid to earn Minneapolis' $15.57 per hour minimum wage. The study analyzed more than 18 million trips made in 2022. found that drivers could earn the city minimum wage (while factoring in health insurance, paid leave and retirement savings) with rates of $1.21 per mile and 49 cents per minute, less than which was approved by the municipal council. ““We support a minimum income standard for drivers,” says Macklin, “but it must be done in an honest way that keeps the service affordable for passengers.”
Uber spokesperson Josh Gold says the same The edge that he is “disappointed that the Council decided to ignore the data and expel Uber from the Twin Cities.” The company claims that the measure will leave 10,000 drivers without work. “We know that by working together with all stakeholders – drivers, passengers and state leaders – we can achieve comprehensive state legislation that guarantees drivers a fair minimum wage, protects their independence and keeps ridesharing affordable,” says Gold .
in a statement provided to He Associated PressMinneapolis Council member Jamal Osman said affordable travel should not come at the expense of drivers' well-being. “Drivers are human beings with families,” he said, “and they deserve living wages like all other workers.” He added that the “vote showed Uber, Lyft and the mayor that the Minneapolis City Council will not allow the East African community, or any community, to be exploited for cheap labor.”
Last year, Minnesota Governor Tim Walz vetoed a bill that would have increased wages for Uber and Lyft drivers across the state, saying at the time that it could “make Minnesota one of the most expensive states in the country for ride-sharing.” With Lyft and Uber saying they will leave Minneapolis, concerns remain about how people will get around the city and the effect it will have on those with disabilities. a report of axios revealed that Minneapolis It only has 39 licensed taxi drivers, much less than the 2,000 taxi drivers in 2014.
Some areas already set a minimum wage for rideshare and food delivery drivers. Last year, New York City enacted a new rule that will raise the minimum wage for drivers to about $18 an hour to start, while Seattle has a rule requiring companies like DoorDash, Uber and Instacart to give drivers delivery workers paid time off due to illness. Uber also started paying drivers a minimum wage in the UK in 2021.
