Uber and Lyft are threatening to shut down operations in Minneapolis, Minnesota, on May 1 if a proposed driver raise ordinance passes. fox business report.
The Minneapolis City Council approved the ride-sharing ordinance Thursday on a 9-4 vote. Minneapolis Democratic Mayor Jacob Frey vetoed the bill Friday, citing concerns that Uber and Lyft would leave the city.
Frey is asking the City Council to either hold off on approving the ordinance until a state review by the Minnesota Department of Labor and Industries is completed, or reduce driver pay increases to rates that ride-hailing companies can afford.
“We’ve been telling Congress for six months to wait until the data is available,” Frey said, according to the newspaper. star tribune.
A state study ordered by Democratic Gov. Tim Walz found that rideshare drivers in the Twin Cities metro area earn an average of 48.7 cents per minute, or 89 cents per mile. A driver operating in the Minnesota metropolitan area earns 42.7 cents per minute or $1.116 per mile.
Uber said the report had “serious flaws” but “clearly recognizes that drivers are independent contractors.” Curry report.
An Uber spokesperson said: “Any compromise must prioritize independent contractor status, as we agree with the state and, most importantly, with our drivers that flexibility is important. ” he said.
A spokesperson claimed, “Minneapolis’ minimum wage proposal deviates by a whopping 60%.”
Lift criticized the state’s report, calling it “nonsense.”
“The only part of this report that is based on reasonable data is the conclusion that rideshare drivers in Minnesota earn more than $52 an hour for rides,” a Lyft spokesperson said. “This research is disingenuous, counterproductive, and counter to the goal of meaningful policymaking.”
If the ordinance passes, rideshare drivers would earn at least $5 per ride and receive 80% of the cost of canceled trips.
With the pay increase, Lyft Almost double the price For passengers. The company called on customers to sign a petition opposing the ordinance.
The City Council now has the vote to override the mayor’s veto and pass the bill into law. Even if Mr. Frey were able to persuade one City Council member to change his voting rights, his veto would not be overridden.
“Small businesses are required to pay minimum wage before tips, and so should multibillion-dollar out-of-state tech companies,” said City Councilman Jason Chavez, who voted in favor of securing raises for drivers. It’s clear that it is.”
“No company should be above the law,” Chavez added. “It’s an economic and racial injustice for Uber and Lyft to rely on low-income riders for subsidies that pay their drivers’ wages.” .
Uber’s recent statement reads: “Uber supports comprehensive, statewide legislation that guarantees drivers a minimum wage of $35 per hour while on the job and protects driver flexibility and independence. If so, we will work with drivers, passengers and Congress to share a ride home.”
” [City Council] “We are hijacking the state process to propose real solutions and analyzing data to inform viable revenue standards,” Uber continued. “Recommendations and gather actual data for legislation” appropriate minimum income standards. ”
Lyft said it is “committed to working with stakeholders toward more sustainable and thoughtful policy solutions, but if this particular proposal becomes law, Lyft will close its operations in the city on May 1st.” “We will have no choice but to stop it,” he said.
“We support minimum income standards for drivers, but it must be done in a way that allows services to operate sustainably and affordably for passengers. For the second time, we have deliberately chosen to ignore offers to our drivers, “rather than cooperating, we have chosen to rush through the most extreme numbers possible,” Lift added. “We urge Mayor Frey to veto this bill and instead join our efforts to pass a statewide minimum income standard that balances the needs of all people. I beg you.”
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