Uber and Lyft postponed plans to exit Minneapolis on May 1 after the City Council delayed the effective date of the minimum wage increase by two months.
Minneapolis City Council unanimously passes It was announced at Thursday’s meeting that the minimum hourly wage increase would be extended until July 1. CNN.
The delay will give lawmakers time to work out a compromise with Uber and Lyft, which have said they would stop operating in Minneapolis if drivers’ wages were raised to the equivalent of the local minimum wage of $15.57 an hour.
Uber said in a statement to CNN on Thursday that the council’s action “paves the way for all stakeholders to work together.” [Minnesota] We are a leader in statewide solutions that increase pay, ensure flexibility and maintain affordability at the state level. ”
Lyft says it is “ready to support the $0.89 per mile and $0.487 per minute rates recommended by the Minnesota Department of Labor and Industries study, which will allow current drivers to continue operating in the city.” This will result in a 17% increase in revenue.”
“This is how we balance the needs of passengers, drivers and the community at large,” Lift said of the Minnesota Department of Labor’s recommended rate, which would also bring drivers to $15.57 an hour.
The study was also said to be a key reason why Minneapolis Mayor Jacob Frey, a Democrat, opposed the new bill even though he supports a minimum wage for rideshare drivers.
The Minneapolis City Council passed ordinance Last summer, a 7-5 vote amended regulations for rideshare employees, giving drivers at least $1.40 per mile, $0.51 per minute, or $5 per ride, whichever is greater, excluding tips. This included the establishment of a minimum wage that must be paid.
CNN reports that without Frey’s support, some City Council members would amend the ordinance to lower the per-mile rate to $1.21, while keeping the proposed $0.51 per minute rate. He is thinking of doing so.
The San Francisco-based ride-hailing service announced it will continue operating in the city through July. Lyft, also based in San Francisco, announced it would remain open until July 1st.
In a statement to the Post, Lift added, “I am heartened that the council recognizes the flaws in the incredibly harmful ordinance.”
“But the fundamental facts remain the same: this ordinance will make rides too expensive for most riders and ultimately reduce driver income.” This is unsustainable for our customers. If possible, and this ordinance inevitably goes into effect, we would be forced to cease operations in Minneapolis. ”
Council President Elliot Payne and council members Katie Cashman and Orrin Chaudhry told CNN affiliate KARE-TV that “leadership in decision-making involves gathering information and engaging stakeholders. “We need to consult and make informed choices, but we also need to accept uncertainty and adapt to new information.”
“Our goals are to ensure fair wages for drivers, stability for drivers and riders, and a healthy and competitive market. This amendment will help us achieve these goals.”
Critics of raising wage requirements say it would likely drive up costs for everyone who relies on ride-hailing services, including low-income people and people with disabilities.
Supporters, meanwhile, say the service relies on drivers, often people of color and immigrants, as cheap labor.
Representatives for Uber did not immediately respond to The Post’s request for comment.
