Lyft and Uber said they are going to stop operations in Minneapolis after town’s council voted Thursday to override a mayoral veto and require that ride-hailing services increase driver wages to the equivalent of the local minimum wage of $15.57 an hour.
Lyft called the ordinance “deeply flawed,” saying in a press release that it supports a minimum earning standard for drivers but not the one passed by the council.
“It must be done in an honest way that keeps the service reasonably priced for riders,” Lyft said. “This ordinance makes our operations unsustainable, and because of this, we’re shutting down operations in Minneapolis when the law takes effect on May 1.”
Ride-hailing drivers have fun in Minneapolis on Thursday. AP
Uber didn’t immediately reply to a request for comment, but news outlets reported that it issued an analogous statement saying it will also stop service that day.
Each corporations promised to push for statewide laws that might counter the Minneapolis ordinance, and state House Republicans proposed a bill Thursday that might preempt local regulations of ride-hailing services.
The City Council first passed the measure last week in a 9-4 vote despite Mayor Jacob Frey’s promise to veto it. The measure requires ride-hailing corporations to pay drivers not less than $1.40 per mile and $0.51 per minute for the time spent transporting a rider — or $5 per ride, whichever is larger — excluding suggestions. Within the event of a multi-city trip, that only applies to the portion that takes place inside Minneapolis.
Lyft called the ordinance “deeply flawed,” saying in a press release that it supports a minimum earning standard for drivers but not the one passed by the council. REUTERS
Critics of the bill say costs will likely spike for everybody, including individuals with low incomes and other people with disabilities who depend on ride-hailing services. Supporters say the services have relied on drivers who are sometimes people of color and immigrants for affordable labor.
Democratic Gov. Tim Walz, who vetoed a bill last 12 months that might have boosted pay for Uber and Lyft drivers, told The Associated Press on Wednesday that he was concerned because so many depend upon those services, including disabled people.
He said he believed the businesses would pull the plug, “and there’s nothing to fill that gap.”
Democratic Gov. Tim Walz, who vetoed a bill last 12 months that might have boosted pay for Uber and Lyft drivers, said he was concerned because so many depend upon those services, including disabled people. AP
Walz added that he hopes the Legislature will seek a compromise that each includes fair pay for drivers and dissuades the businesses from leaving.
Seattle and Recent York City have passed similar policies in recent times that increase wages for ride-hailing drivers, and Uber and Lyft still operate in those cities.
