Uber and Lyft vowed to stop providing service in Minneapolis starting May 1, after the Minneapolis City Council voted 10-3 on Thursday to overturn the mayor’s veto of a minimum wage for drivers. Minnesota Democratic Gov. Tim Walz last year vetoed a similar minimum wage for ride-sharing drivers across the state.
Uber said it will leave the entire Minneapolis-St. Louis metropolitan area. Paul, who has a population of about 3.7 million, stressed that the state has been working on solutions.Uber will also stop serving MSP, the region’s largest airport, although technically located in an unorganized area outside Minneapolis that also hosts the state’s first military fortress.
“We are disappointed that the City Council chose to ignore this data and kick Uber out of the Twin Cities, leaving 10,000 people jobless and many others in dire straits,” Uber told Gizmodo in a statement on Friday. “But we know that by working with Working together with all stakeholders — drivers, riders and state leaders — we can achieve comprehensive, statewide legislation that guarantees drivers a fair minimum wage, protects their independence and keeps rideshare prices affordable.”
Much of the fight in Minneapolis comes down to how the minimum wage is calculated to give rideshare drivers the same $15.57 an hour as other workers in the city. Calculating a driver’s average salary over time can be tricky since drivers only get paid based on the time they carry passengers, and they also pay their own expenses like gas and insurance.
The calculations used by the city council are $1.40 per mile and $0.51 per minute, but local independent news media Minnesota Reformers noted that this differs from an analysis released by the state in 2022, which estimated that drivers in Minneapolis would need to earn $0.89 per mile and $0.49 per minute to meet the minimum wage.
Minneapolis has a large Somali-American community that passes Minneapolis Uber/Lyft Drivers Association (soil).
Minneapolis City Council member Jamal Osman told local television: “Today’s vote shows Uber, Lyft and the mayor that the Minneapolis City Council will not allow the East African community or any other community to be subjected to Exploitation of cheap labor.” WCCO.
Minneapolis Democratic Mayor Jacob Frey vetoes pay increase, telling local public radio station Doppler “If you’re completely unemployed, a raise doesn’t do much good.”
While Uber is the largest ride-sharing company in the United States, rival Lyft is also exiting the market. The two companies estimate they have a total of 10,000 drivers.
“This deeply flawed bill has been stalled despite significant community concerns. We support a minimum income standard for drivers, but this ordinance will make rides unaffordable for most Minneapolis residents,” Lyft a spokesperson told Gizmodo in a statement on Friday.
“The sharp decline in rides means the hundreds of thousands of drivers who rely on Lyft to earn income will end up making less, creating an unsustainable situation for our customers,” the statement continued, adding that the company hopes to ” Return to Minneapolis as soon as possible.