The state of Minnesota has reached a compromise with ride-sharing companies Uber and Lyft on a driver pay package. The state Legislature passed a bill that sets a minimum pay rate of $1.28 per mile and 31 cents per minute, which will take effect in January. This agreement was made to replace a minimum pay measure that was passed by the Minneapolis City Council, which prompted Uber and Lyft to threaten to leave the state. Both companies have agreed to continue operating in Minnesota under these new rates, despite potential price increases for riders and drivers.
Uber spokesperson Josh Gold stated that while the price increases may have an impact on riders and drivers, they are pleased to be able to continue operating across the state under the compromise brokered by the Governor. Lyft also expressed their approval of the new pay package, stating that Twin Cities rideshare drivers were already earning higher than the national median. However, many drivers have disputed this claim, stating that they often earn less than minimum wage. Lyft believes that the new legislation strikes a balance between providing a pay increase for drivers and ensuring that riders can afford the service.
The original plan by the city of Minneapolis required ride-sharing companies to pay drivers a minimum of $1.40 per mile and 51 cents per minute, or $5 per ride, whichever is greater. This plan raised objections from Uber and Lyft, who threatened to leave the city and the state. Despite the new pay rates being lower than what drivers had initially sought, Marianna Brown, vice president of the Minnesota Uber/Lyft Drivers Association, expressed happiness that a deal was reached. Governor Tim Walz praised the compromise on social media, stating that it gives rideshare drivers a 20% raise and ensures that these important services can continue operating in Minnesota.
The bill now awaits Governor Walz’s signature before it becomes law. The House passed the compensation bill, but it faced delays in the Senate before ultimately being approved before the midnight deadline on Sunday. Both Uber and Lyft have committed to continuing their operations in Minnesota under the new pay rates, avoiding a potential shutdown that would have impacted drivers and riders across the state. The agreement comes after weeks of negotiations between lawmakers and ride-sharing companies to find a solution that would be acceptable to all parties involved.
Overall, the compromise reached between Minnesota and ride-sharing companies Uber and Lyft on a new driver pay package has been welcomed by both parties. The agreement sets a minimum pay rate for drivers, ensuring that they receive fair compensation for their services. While some drivers may still have concerns about their earnings, the compromise allows Uber and Lyft to continue operating in the state, providing an essential service to riders. Governor Tim Walz praised the deal for giving rideshare drivers a raise and ensuring that these important services remain available in Minnesota.
