Minneapolis, MN: Taxi applications After a new regulation increases driver compensation on May 1, Uber and Lyft have announced that they will withdraw from the Minneapolis market.
When the new legislation takes effect on May 1, including the airport, Uber claims that Minneapolis might become the only U.S. metro area without Uber.
In accordance with this provision, drivers must be compensated at least $1.40 per mile and $0.51 per minute while transporting a passenger, with the possibility of yearly adjustments as stated in this section, or $5, whichever is higher.
“Uber and Lyft pulled out all the stops to try & scare the Council into stopping this policy, but we are with the drivers because we believe in people over profits,” writes Minneapolis Ward 9 City Councilman Jason Chavez in a social media post. I am pleased that we were able to accomplish this goal with the help of our driver and coworkers. The Mayor’s Veto was overridden (10-3) by us.
Uber is “disappointed” with the override, according to Josh Gold, senior director of public affairs.
Gold released a statement expressing disappointment with the council’s decision to terminate Uber’s operations in the Twin Cities, which resulted in the termination of 10,000 jobs and the displacement of many more. “However, we are confident that with the combined efforts of drivers, riders, and state officials, we can pass thorough statewide legislation that ensures drivers receive a just minimum wage, safeguards their autonomy, and maintains affordable ridesharing.”
Taxis would become “unaffordable” due to the bill, according to Lyft, which is why the company plans to close.
The rideshare company Lyft recently announced a guarantee that drivers will always earn at least 70% of the weekly rider fares after external expenses. The announcement was made because they support a minimum earning threshold for drivers. Rides would be out of reach financially for most Minneapolis residents under this rule. Unsustainable for our consumers, the precipitous decline in rides would lead to lower profits for the thousands of Lyft drivers that depend on the service.
“We will keep pushing for a solution that benefits both drivers and riders in Minnesota, and we’re looking forward to getting back to Minneapolis soon,” Lyft stated.