Popular ride-sharing apps Lyft and Uber will continue to operate in Minnesota after lawmakers in the state passed a compromise bill over driver pay.
Lawmakers in the North Star State had been deliberating a minimum wage for ride-sharing drivers despite objections from the two companies over a city ordinance in Minneapolis that achieved such a policy. The agreed-upon minimum pay rates of $1.28 per mile and 31 cents per minute for drivers was lower than the Minneapolis ordinance, which will be overridden by the state law.
The compromised lower rate was approved over the weekend, and both companies say they will remain in the state as a result of the compromise. The two companies had threatened to leave Minneapolis by July 1 over the ordinance, which required a minimum pay of $1.40 per mile and 51 cents per minute or a minimum of $5 per ride — whichever was more. The new law will implement the minimum pay statewide beginning on Jan. 1, 2025.
“We have long supported a minimum earnings standard and increasing driver pay in smart, deliberate ways, which is why earlier this year we announced a new commitment where drivers will always make at least 70% of the weekly rider fares after external fees. This legislation builds on those efforts and marks an important compromise that allows Minnesota rideshare drivers to keep earning with Lyft,” a Lyft spokesperson told the Washington Examiner.
“Through direct engagement with all stakeholders, we have found enough common ground to balance a new pay increase for drivers with what riders can afford to pay and preserve the service. We look forward to continuing to serve both riders and drivers across the state for the foreseeable future,” the statement continued.
An Uber spokesperson told the Associated Press that “while the coming price increases may hurt riders and drivers alike, we will be able to continue to operate across the State under the compromise brokered by the Governor.”
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The bill must be signed into law by Gov. Tim Walz (D-MN), but he was supportive of the measure and looks likely to give it final approval.
“Tonight we reached an agreement that gives rideshare drivers a 20% raise and keeps these important services operating in Minnesota. I’m grateful to our partners in the House and Senate DFL for coming together to get this done,” Walz said in a post on X on Saturday night.
