June 13, 2024

Minnesota lawmakers reach deal to raise pay rate for Uber, Lyft drivers


Minnesota lawmakers handed a invoice Sunday that goals to enhance the pay rate for rideshare drivers  and Lyft.

Gov. Tim Walz and different Democratic leaders introduced a deal on a invoice that might raise the pay rate for drivers by 20%, that means drivers will now make $1.28 per mile and $0.31 per minute, in accordance to Fox 9.

The settlement comes forward of an ordinance from the Minneapolis City Council scheduled to take impact July 1. The ordinance, which might raise the minimal wage for drivers to $1.40 per mile and 51 cents per minute, led Uber and Lyft to threaten to depart Minneapolis.

The two rideshare firms stated the deal reached Sunday represents a suitable compromise that might permit them to proceed working throughout Minnesota.

UBER, LYFT TO LEAVE MINNEAPOLIS DUE TO MINIMUM WAGE LAW

Ride-sharing companies Uber and Lyft are threatening to leave Minneapolis over a new mandate guaranteeing a minimum wage for drivers.

Minnesota lawmakers handed a invoice Sunday that goals to enhance the pay rate for rideshare drivers working for Uber and Lyft. (Smith Collections/Gado through Getty Images / Getty Images)

“We applaud the tens of thousands of riders and drivers who sent close to 100,000 emails to legislators – your voices were heard,” Uber Senior Director of Public Policy and Communications Josh Gold stated in a press release to Fox 9. “While the coming price increases may hurt riders and drivers alike, we will be able to continue to operate across the State under the compromise brokered by the Governor.”

Uber additionally stated the laws was primarily based on a “flawed study” and that it doesn’t embody different prices, together with per journey charge, paid sick time or unemployment insurance coverage.

Lyft responded to the legislation by saying the corporate discovered sufficient widespread floor to stop it from exiting the state.

“We have long supported a minimum earnings standard and increasing driver pay in smart, deliberate ways, which is why earlier this year we announced a new commitment where drivers will always make at least 70% of the weekly rider fares after external fees,” a spokesperson for Lyft stated in a press release to Fox 9.

UBER, LYFT THREATEN TO LEAVE MINNEAPOLIS OVER CITY ORDINANCE

Uber vehicle

Rideshare drivers will now make $1.28 per mile and $0.31 per minute. ( ROBYN BECK/AFP through Getty Images) / Getty Images)

“This legislation builds on those efforts and marks an important compromise that allows Minnesota rideshare drivers to keep earning with Lyft,” the assertion continued. “Through direct engagement with all stakeholders, we have found enough common ground to balance a new pay increase for drivers with what riders can afford to pay and preserve the service. We look forward to continuing to serve both riders and drivers across the state for the foreseeable future.”

The lead sponsor of the invoice, Democrat Sen. Omar Fateh, stated the measure to raise driver pay was a very long time coming.

“Oh, man. It’s been two long years,” he stated on the podium asserting the settlement on Sunday.

Republican lawmakers, nevertheless, criticized Democrats for largely leaving them out of the invoice’s legislative process.

Lyft

Uber and Lyft stated the invoice represents a suitable compromise that might permit them to proceed working throughout Minnesota. (Justin Sullivan/Getty Images / Getty Images)

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“The reality is, this is a day where we should’ve been doing work, but we were not,” Senate Minority Leader Mark Johnson stated. “We were trying to figure out what was happening while we were being kept in the dark the entire time.”

Walz highlighted the significance of the settlement and praised lawmakers for not wavering all through the method to transfer the laws throughout the end line.

“This is hard,” Walz stated. “No one else has been able to do this in the country, and I think what you heard here, they set a standard in this across the country, making sure that folks are able to get their rides when they need them, but that the drivers are being paid accordingly to make that happen.”



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