Current:Home > BackUber, Lyft leaving Minneapolis: City council passes measure forcing driver pay increase-InfoLens
Uber, Lyft leaving Minneapolis: City council passes measure forcing driver pay increase
View Date:2024-12-23 16:50:44
Uber and Lyft said they will be ceasing operations on May 1 after the Minneapolis city council voted Thursday to override a mayoral veto and require the ride-sharing services to enact a pay raise for its drivers.
According to the Star Tribune, a daily newspaper based in Minneapolis, the council voted 10 to 3 to override Mayor Jacob Frey's veto of the ordinance, which is set to take effect May 1 and would increase driver wages to the equivalent of the local minimum wage of $15.57 an hour.
"This deeply-flawed bill has been jammed through despite major concerns being raised by the community," Lyft said in an emailed statement to USA TODAY. "We support a minimum earning standard for drivers, but it should be done in an honest way that keeps the service affordable for riders," the statement reads.
Lyft said the ordinance passed by the city council makes its operations "unsustainable," and as a result the company is "shutting down operations in Minneapolis when the law takes effect on May 1," according to the statement. Lyft also says it will continue to "advocate for a statewide solution in Minnesota that balances the needs of riders and drivers" and that the company hopes to resume operations in Minneapolis as soon as possible.
The Star Tribute reports that Frey had pleaded with council members to lower the minimum pay to a level that would significantly boost driver incomes but still be acceptable to the rideshare companies. However, Thursday's vote means the ordinance will go into effect as it currently is, although the council could tweak it before May.
Outage reported:McDonald's experiences tech outages worldwide, impacting some restaurants
Uber, Lyft leaving Minneapolis: Dispute over higher driver pay
According to the Associated Press, the measure requires rideshare companies to pay drivers at least $1.40 per mile and 51 cents per minute for the time spent transporting a rider, or $5 per ride, whichever is great excluding tips.
The Star Tribune reports that a state-commissioned study from the Minnesota Department of Labor and Industry concluded that drivers could be paid far less than the Minneapolis city council's plan to earn the equivalent of minimum wage, even with benefits like health insurance and paid time off.
Critics of the bill say costs will spike for everyone, including low-income populations and people with disabilities. Proponents of the bill claim the rideshare companies have relied on drivers who are often people of color or immigrants for cheap labor.
“Drivers are human beings with families, and they deserve dignified minimum wages like all other workers,” Jamal Osman, a council member who co-authored the policy, said in a statement, according to the Associated Press.
"We are disappointed the council chose to ignore the data and kick Uber out of the Twin Cities, putting 10,000 people out of work and leaving many stranded, said Josh Gold, senior director of public affairs at Uber, in an emailed statement to USA TODAY.
Uber, like Lyft, says it remains committed to achieving a "comprehensive statewide legislation that guarantees drivers a fair minimum wage" and keeps rideshare affordable, according to the statement.
veryGood! (1)
Related
- Nelly will not face charges after St. Louis casino arrest for drug possession
- I’m a Shopping Editor, Here Is My New Year’s Hair Care Resolutions List for 2024
- Longtime North Carolina appellate judge preparing to scale back work at the 4th US Circuit
- Nearly 700 swans found dead at nature reserve as specialists investigate bird flu
- California farmers enjoy pistachio boom, with much of it headed to China
- Watch these humpback whales create a stunning Fibonacci spiral to capture prey
- All the Details on E!'s 2023 Emmys Red Carpet Experience
- France’s new government announced with only one major change at the foreign ministry
- Taylor Swift's Mom Andrea Gives Sweet Nod to Travis Kelce at Chiefs Game
- Wisconsin Supreme Court refuses to reconsider ruling ordering new legislative maps
Ranking
- Tom Brady Shares How He's Preparing for Son Jack to Be a Stud
- FAA says it is investigating Boeing over Alaska Airlines' mid-air blowout
- Iowa community recalls 11-year-old boy with ‘vibrant soul’ killed in school shooting
- Alabama can enforce a ban on gender-affirming care for transgender minors, appeals court rules
- 'Dangerous and unsanitary' conditions at Georgia jail violate Constitution, feds say
- Australian Open 2024: Here’s how to watch on TV, betting odds and a look at upcoming matches
- Kentucky governor touts rising college enrollments while making pitch for increased campus funding
- The UK prime minister is visiting Kyiv to announce a new support package for Ukraine
Recommendation
-
Manhattan rooftop fire sends plumes of dark smoke into skyline
-
US Air Force announces end of search and recovery operations for Osprey that crashed off Japan
-
'It left us': After historic Methodist rift, feelings of betrayal and hope for future
-
Nick Saban explains why he decided to retire as Alabama head football coach
-
The results are in: Peanut the Squirrel did not have rabies, county official says
-
Schumer moving forward with temporary funding bill to avoid shutdown as spending talks continue
-
Rome opens new archaeological park and museum in shadow of Colosseum
-
Indonesia and Vietnam discuss South China sea and energy issues as Indonesian president visits