Lyft and Uber have said they will halt operations in Minneapolis because of a new city ordinance that increases wages for app-based drivers
Lyft and Uber have said they will halt operations in Minneapolis because of a new city ordinance that increase wages for app-based drivers, the latest salvo in a longtime fight between gig economy workers and the tech giants. The city’s council vote Thursday overrode a mayoral veto of the measure and means ride-hailing companies will have to pay drivers the equivalent of the local minimum wage of $15.57 an hour.
Emmanuel Noah, who has been driving for both companies for years, said Lyft and Uber need to listen to the drivers and he hopes their talk of leaving is a bluff. Drivers aren't making enough to make ends meet right now, especially since they have to pay for their cars and maintenance, he added, speaking outside Minneapolis-St. Paul International airport where he was waiting for a fare. “To put food on the table for our families,” he said. “That’s why we’re looking for a raise.
Both Lyft and Uber nodded to the potential for statewide legislation that would counteract the city ordinance. House Republicans proposed a bill Thursday that would preclude local officials from enacting such regulations. Walz told AP he hopes the Legislature will seek a compromise that includes fair pay for drivers but also dissuades the companies from leaving the market.
Gig economy workers have protested across the country to decry low wages and poor conditions, including a Valentine’s Day strike last month by ride-hailing drivers. Some cities have moved to regulate the companies, with mixed results. Measures last year in New York City and this year in Seattle established an $18 hourly minimum wage for food delivery workers. While platforms like Uber Eats and DoorDash still operate in New York City under the new rules, they have limited workers hours there.
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