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Uber & Lyft May Exit Minneapolis Over Pay Law

Minneapolis faces the possibility of losing Uber and Lyft services starting May 1, following the City Council’s decision to enforce minimum wage laws for app-based drivers, despite Mayor Jacob Frey’s veto. This development echoes a similar situation from last year, which saw a divided council but ultimately led to a veto override with a decisive 10-3 vote this time around, reflecting changes in the council’s composition.

Lyft promptly announced its intent to cease Minneapolis operations as the law becomes effective, expressing hopes for a state-level resolution that would allow a balanced approach to driver and rider needs. Uber, echoing Lyft’s sentiment, warned that Minneapolis could become the first major U.S. city without its services come May 1.

The move has garnered support online, with City Council member and legislation sponsor Jamal Osman highlighting the importance of fair wages for drivers, including those from the East African community, and condemning exploitation for cheap labor.

The city auditor’s report, released in early February, estimated the mandate’s cost at about $15.57 per hour, derived from current and proposed ordinance rates, including $1.40 per mile and 50 cents per minute when transporting a rider, with annual adjustments and a $5 minimum for shorter trips. Additionally, drivers of wheelchair-accessible vehicles could earn $1.81 per mile, plus the per-minute rate or the $5 minimum, with 80% of cancellation fees directed to drivers, excluding tips from minimum compensation calculations.

The ordinance has polarized opinions, with critics like Dan Meyers from the disabled community arguing it could significantly increase ride costs, impacting those reliant on ride-sharing for essential activities. Conversely, some drivers, like Said Mohamed, remain skeptical of Uber and Lyft’s departure threats, citing the companies’ financial stakes in the city.

With Seattle and New York City maintaining operations despite similar pay ordinances, Minneapolis’s situation remains uncertain, sparking a citywide debate on the balance between fair compensation and accessible ride-sharing services.

The post After minimum pay rule passes, Uber and Lyft threaten to leave Minneapolis appeared first on FreightWaves.

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2024 Canadian trucking; Semi Truck loans
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