The ride-hailing corporations Uber and Lyft mentioned they may delay their deliberate exit from Minneapolis after metropolis officers determined Wednesday to push again the beginning of a driver pay raise by two months.
The Minneapolis Metropolis Council voted unanimously to implement the ordinance on July 1 as an alternative of Might 1.
Some council members mentioned this offers different ride-hailing corporations extra time to determine themselves available in the market earlier than Uber and Lyft doubtlessly go away, and it provides Minnesota lawmakers an opportunity to go statewide guidelines on pay for ride-hailing drivers.
Council member Robin Wonsley, the lead creator of the ordinance, mentioned the delay would result in higher outcomes for drivers and riders, and lay a stronger basis for a extra equitable ride-hailing business statewide. She referred to as the present business mannequin “extremely exploitative.”
Beneath the ordinance, ride-hailing corporations should pay drivers a minimum of $1.40 per mile and $0.51 per minute — or $5 per trip, whichever is bigger — excluding suggestions, for the time spent transporting passengers in Minneapolis.
The change goals to make sure corporations pay drivers the equal of town’s minimal wage of $15.57 per hour after accounting for fuel and different bills. Nonetheless, a current research commissioned by the Minnesota Division of Labor and Trade discovered {that a} decrease fee of $0.89 per mile and $0.49 per minute would meet the $15.57 aim.
Uber and Lyft representatives say they will help the decrease fee from the state’s research however not town’s increased fee. Uber says it will finish operations in your entire Minneapolis-St. Paul metropolitan space — a seven-county area with 3.2 million individuals — whereas Lyft would solely cease serving Minneapolis.
Lyft mentioned town’s fee “will make rides too expensive for most riders, meaning drivers will ultimately earn less. This is unsustainable for our customers.”
Uber additionally warned of decreased demand, saying even the state research’s fee would nonetheless “likely lead to lower hourly pay since drivers will spend more time in between rides waiting for passengers,” firm spokesperson Josh Gold mentioned.
Some state legislators have proposed preempting, or overriding, town ordinance with a state regulation.
Uber and Lyft beforehand pulled out of Austin, Texas, in 2016, after town pushed for fingerprint-based background checks of drivers as a rider security measure. The businesses returned after the Texas Legislature overrode the native measure and handed a regulation implementing completely different guidelines statewide.
On the Minnesota Legislature, Democratic Home Majority Chief Jamie Lengthy of Minneapolis mentioned he hopes ongoing negotiations between state and metropolis officers might help resolve the dispute.
“I think that we will get to a result that’s going to keep the companies operating and is going to protect the drivers,” Lengthy instructed reporters. “I’m really hoping that we can avoid preemption.”
Uber and Lyft drivers within the Minneapolis space are divided on the motive force pay concern.
Muhiyidin Yusuf, 49, helps the ordinance. Yusuf mentioned he works as an Uber and Lyft driver for about 60 hours every week however nonetheless depends on authorities help and accused the businesses of constructing massive earnings whereas he struggles.
“I’m doing all of the work. But they are taking a majority of the money,” mentioned Yusuf, who immigrated from Somalia in 2010. He’s one among many African immigrants within the Minneapolis space who work as Uber and Lyft drivers and have advocated for the speed enhance in recent times.
Maureen Marrin, a part-time Uber and Lyft driver, opposes the ordinance. Marrin mentioned she earns a mean of $40 per hour whereas driving and doesn’t perceive how different drivers earn lower than the equal of minimal wage.
“I’m fortunate. I’m retired, I have another source of income, so it’s also easier for me to make more money because I can pick and choose,” Marrin mentioned. “But I’m worried they (Uber and Lyft) are going to leave and will be replaced by something that we don’t even know what we’re getting.”
