Uber and Lyft are quitting Minneapolis over a driver pay increase
Uber and Lyft plan to end operations in Minneapolis after the city council voted to increase driver pay. The council passed an ordinance on the issue last week. On Thursday, it voted to overrule a mayoral veto of the measure.
The new rules stipulate that ridesharing companies need to pay drivers at least $1.40 per mile and 51 cents per minute (or $5 a ride, whichever is higher) whenever they’re ferrying a passenger. Tips are on top of the minimum pay. According to the Associated Press, the council passed the ordinance to bring driver pay closer to the local minimum wage of $15.57 an hour.
However, Uber and Lyft say they’ll end services in the city before the pay rise takes effect on May 1. Lyft says the increase is “deeply flawed,” citing a Minnesota study indicating that drivers could meet the minimum wage and still cover health insurance, paid leave and retirement savings at lower rates of $1.21 per mile and 49 cents per minute. “We support a minimum earning standard for drivers, but it should be done in an honest way that keeps the service affordable for riders,” spokesperson CJ …read more
