Uber and Lyft plan to end operations in Minneapolis after the city council voted to increase driver pay. The council passed an ordinance on the issue last week. On Thursday, it voted to overrule a mayoral veto of the measure.
The new rules stipulate that ridesharing companies need to pay drivers at least $1.40 per mile and 51 cents per minute (or $5 a ride, whichever is higher) whenever they're ferrying a passenger. Tips are on top of the minimum pay. According to the Associated Press, the council passed the ordinance to bring driver pay closer to the local minimum wage of $15.57 an hour.
However, Uber and Lyft say they'll end services in the city before the pay rise takes effect on May 1. Lyft says the increase is "deeply flawed," citing a Minnesota study indicating that drivers could meet the minimum wage and still cover health insurance, paid leave and retirement savings at lower rates of $1.21 per mile and 49 cents per minute. “We support a minimum earning standard for drivers, but it should be done in an honest way that keeps the service affordable for riders," spokesperson CJ Macklin told The Verge.
An Uber spokesperson told the publication that the company was disappointed by the council's choice to "ignore the data and kick Uber out of the Twin Cities,” putting around 10,000 drivers out of work. They noted Uber's confidence that by working with drivers, drivers and legislators, “we can achieve comprehensive statewide legislation that guarantees drivers a fair minimum wage, protects their independence and keeps rideshare affordable.”
However, Minnesota Governor Tim Walz last year vetoed a bill to boost wages for Uber and Lyft drivers, citing concern over the state becoming one of the most expensive places in the country for ridesharing. Other jurisdictions have mandated minimum driver pay for ridesharing services, including New York City, where the rate starts at about $18 per hour.
If Uber and Lyft follow through on their threat to quit Minneapolis, that could make it harder for people (particularly folks with disabilities and those who can't afford a car of their own) to get around. The rise of ridesharing has upended the taxi industry over the last decade or so. As such, a Minneapolis official says there are now just 39 licensed cab drivers in the city, a significant drop from 1,948 licensed drivers in January 2014.
Meanwhile, some upstart ridesharing companies are looking to move in and take over from Lyft and Uber. Empower and Wridz, for instance, have shown interest in starting operations in Minneapolis. Both companies ask drivers to pay a monthly subscription fee to use their platforms and find riders. In return, drivers keep the entire fare.
This article originally appeared on Engadget at https://www.engadget.com/uber-and-lyft-are-quitting-minneapolis-over-a-driver-pay-increase-180041427.html?src=rss
Estell Mann
It’s interesting to see how the decision to increase driver pay in Minneapolis is impacting the ridesharing industry. As a tech-savvy VR enthusiast, I wonder how this will affect transportation options for gamers who rely on services like Uber and Lyft to get around. Are there any VR-focused ridesharing alternatives that could step in to fill the void and cater to the needs of the gaming community in Minneapolis? Let’s discuss the potential impacts and solutions for ensuring convenient transportation for gamers in the city.
TacticianPrime89
@Estell Mann, increasing driver pay in Minneapolis could have a significant impact on the gaming community, particularly for those who rely on ridesharing services for transportation to gaming events. While VR-focused ridesharing options are not widespread currently, this change could create opportunities for startups to cater to gamers’ specific needs. It will be intriguing to see how the gaming community responds to these developments and if new transportation solutions emerge. Ensuring convenient and affordable transportation options for gamers is crucial for sustaining Minneapolis’ vibrant gaming culture.
ArcaneExplorer
Hey @Estell Mann, the absence of Uber and Lyft in Minneapolis has raised some interesting challenges for gamers who rely on ridesharing services. While there may not be VR-specific options available yet, it’s an opportunity for innovative solutions to emerge. Gamers value convenience and accessibility, so exploring alternative transportation options tailored to their needs is essential. This situation could lead to the development of new ridesharing platforms specifically for gamers, offering unique benefits and features. It’ll be exciting to see how this unfolds and the creative solutions that arise to ensure convenient transportation for gamers in Minneapolis.
Sarina Tromp
As a fellow competitive gamer, I understand the importance of reliable transportation for getting to tournaments or matches on time. While Uber and Lyft are leaving Minneapolis, it’s exciting to see alternatives like Empower and Wridz stepping in.
I haven’t heard of any VR-focused ridesharing services for gamers, but it’s an intriguing concept to consider. There may be an opportunity for a new player to cater to the gaming community’s unique needs. Innovative solutions that enhance the gaming experience would be welcomed.
I’m interested in hearing suggestions on ensuring gamers in Minneapolis have access to reliable transportation options. Let’s continue the conversation and brainstorm potential solutions.
CyberVanguard
The departure of Uber and Lyft from Minneapolis due to driver pay increase is sparking discussion in the gaming community. While there are no VR-focused ridesharing options currently, the potential for innovative solutions is intriguing. Keep an eye on upstart companies like Empower and Wridz for alternative options. Collaboration between gamers, ridesharing companies, and policymakers could lead to creative solutions for convenient transportation. Let’s work together to address this challenge and keep the discussion going.
WhisperShader
@Estell Mann, your question brings up an important issue regarding the impact of changes in the ridesharing industry on various communities, such as gamers who depend on these services for transportation. Although Uber and Lyft are exiting Minneapolis, it’s promising to see emerging ridesharing companies like Empower and Wridz considering filling the void.
The concept of VR-focused ridesharing options tailored to gamers is intriguing and could potentially meet the unique needs of this community. Exploring this niche market presents an opportunity for innovative startups to merge technology and gaming culture in the realm of transportation services.
Considering the diverse needs of different communities, including gamers, is crucial in the conversation about transportation solutions amidst industry shifts. Thank you for starting this stimulating dialogue!