Ride-sharing companies Uber and Lyft announced they would continue operating in Minnesota after the state Legislature on Sunday passed a compromise driver compensation bill for the city of Minneapolis that the companies opposed.
The bill, written by state House Democrats, would set a minimum wage of $1.28 per mile and 31 cents per minute for drivers and would go into effect in January.
“Future price increases could hurt both riders and drivers, but the compromise brokered by the governor allows us to continue operating across the state,” Josh Gold, an Uber spokesman, said in a statement. Deaf,” he said.
Lyft said the bill balances “new wage increases for drivers with what riders can pay to maintain service.”
The Minneapolis proposal would have set a minimum of $1.40 per mile, 51 cents per minute, or $5 per ride, whichever is greater, excluding tips.
Gov. Tim Walz (D) said the compromise passed Sunday would raise wages for drivers by about 20%.
“We are grateful to our partners in the House and Senate DFL for coming together to get this done,” he said in a written statement. statement.
Drivers in the Twin Cities complain they don’t pay enough for ride-sharing services because car maintenance and gas costs cut into already low fares.
“It’s to put food on the table for my family,” Emmanuel Noah, a driver from Minneapolis-St. Paul, told The Associated Press. “That is why we are asking for a raise.”
Other cities, including New York and Seattle, have previously set minimum wages for food delivery workers, including Uber Eats drivers.
The Associated Press contributed.
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