In response to the Minneapolis city council's decision to override a mayoral veto and mandate ride-hailing services to raise driver wages to the local minimum wage of $15.57 an hour, Lyft and Uber have announced their intention to halt operations in the city.
According to the AP, Lyft expressed its concerns about the ordinance, describing it as "deeply flawed." The company stated that while it does support a minimum earning standard for drivers, it does not agree with the specific one that was passed by the council. "It should be done in a manner that maintains affordability for riders while upholding honesty," Lyft stated. "Due to the impact of this ordinance, we regretfully announce the closure of our operations in Minneapolis, effective May 1."
According to Fox 9, Uber also released a statement with a matching deadline. Both companies have committed to advocating for statewide legislation that aims to counter the Minneapolis ordinance. Additionally, state House Republicans have put forth a bill on Thursday that seeks to preempt local regulations of ride-hailing services. In a surprising turn of events, the City Council approved the measure last week with a 9-4 vote, going against Mayor Jacob Frey's earlier promise to veto it.
The measure mandates that ride-hailing companies must compensate drivers with a minimum of $1.40 per mile and $0.51 per minute for the duration of a trip, or $5 per ride, whichever amount is higher, excluding any gratuities. For a multi-city trip, this only applies to the portion that occurs within Minneapolis.
Some individuals have expressed concerns about the bill, suggesting that it may result in increased costs for various groups, such as those with low incomes and individuals with disabilities who heavily depend on ride-hailing services. Advocates argue that the services have heavily relied on individuals from diverse backgrounds, including people of color and immigrants, as a source of affordable labor. "Drivers are human beings with families, and they should receive fair minimum wages just like any other workers," expressed Jamal Osman, a council member who played a role in developing the policy, in a statement.
Seattle and New York City have implemented comparable policies in recent years to raise wages for ride-hailing drivers, and Uber and Lyft continue to operate in those cities.
According to the AP, Lyft expressed its concerns about the ordinance, describing it as "deeply flawed." The company stated that while it does support a minimum earning standard for drivers, it does not agree with the specific one that was passed by the council. "It should be done in a manner that maintains affordability for riders while upholding honesty," Lyft stated. "Due to the impact of this ordinance, we regretfully announce the closure of our operations in Minneapolis, effective May 1."
According to Fox 9, Uber also released a statement with a matching deadline. Both companies have committed to advocating for statewide legislation that aims to counter the Minneapolis ordinance. Additionally, state House Republicans have put forth a bill on Thursday that seeks to preempt local regulations of ride-hailing services. In a surprising turn of events, the City Council approved the measure last week with a 9-4 vote, going against Mayor Jacob Frey's earlier promise to veto it.
The measure mandates that ride-hailing companies must compensate drivers with a minimum of $1.40 per mile and $0.51 per minute for the duration of a trip, or $5 per ride, whichever amount is higher, excluding any gratuities. For a multi-city trip, this only applies to the portion that occurs within Minneapolis.
Some individuals have expressed concerns about the bill, suggesting that it may result in increased costs for various groups, such as those with low incomes and individuals with disabilities who heavily depend on ride-hailing services. Advocates argue that the services have heavily relied on individuals from diverse backgrounds, including people of color and immigrants, as a source of affordable labor. "Drivers are human beings with families, and they should receive fair minimum wages just like any other workers," expressed Jamal Osman, a council member who played a role in developing the policy, in a statement.
Seattle and New York City have implemented comparable policies in recent years to raise wages for ride-hailing drivers, and Uber and Lyft continue to operate in those cities.
