Supporters of Minnesota legislation -- which would require ride-hailing companies to increase pay for drivers -- walk through the State Capitol building, holding signs that say “WE ARE COUNTING ON YOU” and shirts that say “MULDA Minnesota Uber/Lyft Driver Association,” in St. Paul, Minn.,, May 17, 2024. Uber and Lyft have said they will leave the state if Minnesota lawmakers pass legislation that requires the companies to raise driver pay by more than they want to. (AP Photo/Trisha Ahmed)
Dozens of protesters descend a staircase in the Minnesota State Capitol building in St. Paul, Minn., Friday, May 17, 2024, while holding signs and pushing for a law that would require ride-hailing companies – including Uber and Lyft -- to increase pay for drivers in the state. Uber and Lyft have said they will leave the state if Minnesota lawmakers pass legislation requiring the companies to raise driver pay by more than the companies want to. (AP Photo/Trisha Ahmed)
May 20, 2024
ST. PAUL, Minn. (AP) — Uber and Lyft plan to keep operating in Minnesota after the state Legislature passed a compromise driver pay package, the companies said Monday.
The House passed the compensation bill but the measure was held up in the Senate before winning approval prior to the midnight Sunday deadline for lawmakers to pass bills before they adjourned. The bill now moves to Gov. Tim Walz to be signed into law, the Star Tribune reported.
The proposal was crafted by Democrats to replace a minimum pay measure the Minneapolis City Council passed that prompted Uber and Lyft to threaten to leave the state’s biggest city and the entire state.
The House agreement announced Saturday after weeks of negotiations would set a minimum pay rate at $1.28 per mile and 31 cents per minute. Uber and Lyft say they will keep operating in the state under those rates. The bill will take effect next January.
“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,” Uber spokesperson Josh Gold said in a statement.
A passerby walks past a sign offering directions to an Uber and Lyft ride pickup location at an airport, Feb. 9, 2021. (AP Photo/Steven Senne, File)
Minnesota Uber and Lyft driver pay package beats deadline to win approval in Legislature
Lyft said in a statement that Twin Cities rideshare drivers were already earning higher than the national median, something drivers have disputed, saying many earn less than the minimum wage. Lyft said the legislation balances “a new pay increase for drivers with what riders can afford to pay and preserve the service.”
The city’s plan that raised objections from the companies would have required them to pay drivers at least $1.40 per mile and 51 cents per minute — or $5 per ride, whichever is greater — excluding tips, for the time spent transporting passengers in Minneapolis.
Marianna Brown, vice president of the Minnesota Uber/Lyft Drivers Association, told the Star Tribune that even though the pay rates are lower than drivers sought, they were happy to see the deal come together.
The governor said in a post on social media platform X that the deal “gives rideshare drivers a 20% raise and keeps these important services operating in Minnesota.”
Lyft said in a statement that Twin Cities rideshare drivers were already earning higher than the national median, something drivers have disputed, saying many earn less than the minimum wage. Lyft said the legislation balances “a new pay increase for drivers with what riders can afford to pay and preserve the service.”
The city’s plan that raised objections from the companies would have required them to pay drivers at least $1.40 per mile and 51 cents per minute — or $5 per ride, whichever is greater — excluding tips, for the time spent transporting passengers in Minneapolis.
Marianna Brown, vice president of the Minnesota Uber/Lyft Drivers Association, told the Star Tribune that even though the pay rates are lower than drivers sought, they were happy to see the deal come together.
The governor said in a post on social media platform X that the deal “gives rideshare drivers a 20% raise and keeps these important services operating in Minnesota.”
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