Uber and Lyft delay their plans to leave Minneapolis after officials push back driver pay plan
The ride-hailing companies Uber and Lyft said they will delay their planned exit from Minneapolis to July 1 after city officials decided Wednesday to push back the start of an ordinance that increases driver pay
MINNEAPOLIS — The ride-hailing companies Uber and Lyft said they will delay their planned exit from Minneapolis after city officials decided Wednesday to push back the start of a driver pay raise by two months.
The Minneapolis City Council voted unanimously to implement the ordinance on July 1 instead of May 1. Some council members said this gives other ride-hailing companies more time to establish themselves in the market before Uber and Lyft potentially leave, and it gives Minnesota lawmakers a chance to pass statewide rules on pay for ride-hailing drivers.
Council member Robin Wonsley, the lead author of the ordinance, said the delay would lead to better outcomes for drivers and riders, and lay a stronger foundation for a more equitable ride-hailing industry statewide. She called the current industry model “extremely exploitative.”
Under the ordinance, ride-hailing companies must pay drivers at least $1.40 per mile and $0.51 per minute — or $5 per ride, whichever is greater — excluding tips, for the time spent transporting passengers in Minneapolis.
The change aims to ensure companies pay drivers the equivalent of the city’s minimum wage of $15.57 per hour after accounting for gas and other expenses. However, a recent study commissioned by the Minnesota Department of Labor and Industry found that a lower rate of $0.89 per mile and $0.49 per minute would meet the $15.57 goal.
Uber and Lyft representatives say they can support the lower rate from the state’s study but not the city's higher rate. Uber says it
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