When a wage hike for ride-sharing drivers goes into effect in May, ride-sharing companies will leave Minneapolis

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Uber and Lyft responded by saying they would stop serving the Minneapolis area when the ordinance takes effect May 1, causing the city to weigh the ordinance it passed.
… the Minneapolis City Council will not allow the East African community, or any community, to be exploited for cheap labor.” Many East African immigrants in the Minneapolis area work as Uber and Lyft drivers and have advocated for the rate increase.
But if the higher rate from the Minneapolis ordinance goes into effect, the companies said they will leave the market May 1.
Tim Walz said he is “deeply concerned” about the possibility of Uber and Lyft leaving the Minneapolis area.
But Walz said the most efficient solution is to ask the Minneapolis City Council to work out a compromise.
Minneapolis City Council members could vote to change the ordinance, take it back completely or leave it as is.
Brown, a Jamaican immigrant, said drivers have been abused by Uber and Lyft for too long.
He urged the City Council and state Legislature to find a way to increase drivers’ pay while keeping ride-hailing services affordable.

NEUTRAL

The city is considering the ordinance it passed after Uber and Lyft announced in response that they would no longer serve the Minneapolis area as of May 1st. In the meantime, drivers and passengers are left wondering what might happen next. The state may also act.

What we currently know is as follows:.

How come?

Overriding a mayoral veto, the Minneapolis City Council last month passed an ordinance requiring ride-hailing companies to pay drivers a minimum rate of $1.40 per mile and $0.51 per minute, or $5 per ride, whichever is greater, excluding tips, for the time spent transporting passengers in Minneapolis.

The rate, according to the ordinance’s supporters, would guarantee that businesses pay drivers the equivalent of the $15.57/hour city minimum wage.

“Drivers are human beings with families, and they deserve dignified minimum wages like all other workers,” stated council member Jamal Osman in a statement. Osman co-authored the ordinance. The East African community, or any community, will not be used as a labor pool for cheap labor, according to the Minneapolis City Council. “.

Advocates of the rate increase are many East African immigrants in the Minneapolis area who drive for Uber and Lyft.

A lower rate of $0.89 per mile and $0.49 per minute, according to a recent study commissioned by the Minnesota Department of Labor and Industry, would nevertheless reach the $15.57 per hour target.

How are Lyft and Uber acting?

According to Uber and Lyft, they can vouch for the rate found in the state study. However, the businesses stated they will withdraw from the market on May 1st if the Minneapolis ordinance’s higher rate is implemented.

A spokesman for Uber, Josh Gold, stated that the business intends to close its Minneapolis, St. Paul, as well as the Minneapolis-Saint Paul International Airport and the Twin Cities metro area.

More than half of the state’s population—more than 3 million people—live in the metro area.

A representative for Lyft, CJ Macklin, stated that the company will only shut down in Minneapolis. Although it won’t pick up or drop off customers at any Minneapolis locations, Lyft will continue to serve the airport.

Both businesses had previously left Austin, Texas, in 2016 in response to the city’s push for driver background checks based on fingerprints as a safety precaution for riders. After the Texas Legislature repealed the local ordinance and enacted a new law with different regulations applied statewide, the companies left the state.

Is it possible for the government to intervene?

Democratic Governor of Minnesota. Tim Walz expressed his “deep concern” regarding the likelihood of Uber and Lyft departing the Minneapolis region.

According to Walz, the change will have an effect on the entire state and all users of the service, including students, individuals with disabilities, and those attempting to return home safely from bars.

Legislation enacted by state legislators could replace the local ordinance. However, Walz claimed that asking the Minneapolis City Council to reach a compromise would be the most effective course of action.

How is the city putting this together?

Members of the Minneapolis City Council have the option to vote to amend, repeal, or keep the ordinance exactly as it is.

Linea Palmisano, a council member, declared that unless something is changed, she will keep voting against it. Its opponents include students, low-wage and part-time workers, hospitals, and a host of other community members, according to Palmisano.

Drivers who disagree with it and “are now at risk of losing their livelihood” have also been contacted, according to Palmisano. “.

The principal author of the ordinance, council member Robin Wonsley, stated that the rate is “the right thing to do.”. “.

This industry has far too long taken advantage of workers of color and immigrants as cheap labor. In her words, “We have the chance and the duty to create a ridesharing market free from exploitation and low pay.

What statements are made by individuals?

There is disagreement among the people living in the Twin Cities metro area; some are in favor of the ordinance because they believe it will assist marginalized workers, while others are against it because they don’t want Uber and Lyft to go.

Uber driver Marianna Brown, who is in her 60s and lives in a Minneapolis suburb, says she is not concerned about the ordinance and supports it because other ride-hailing services, including a local driver-owned cooperative, are planning to enter the Minneapolis market. Immigrant from Jamaica, Brown claimed that Uber and Lyft have been mistreating drivers for far too long.

Arianna Feldman, 31, of Minneapolis, stated that she has taken nearly 2,000 Lyft rides and supports the ordinance due to her lack of access to dependable public transportation, health concerns, and inability to drive.

“I find it extremely disheartening that these multibillion-dollar corporations are enslaving us in this manner and penalizing communities for advocating for a fundamental right to fair compensation,” the speaker stated.

44-year-old Jake Clark from St. Paul, an Uber and Lyft driver, is against the proposed ordinance. Because he places a high value on customer service and carefully considers which rides to accept, Clark claimed he has never made less than $25 per hour and has made up to $75.

Minneapolis resident Michael Sack, 34, is likewise against the ordinance. He is a member of the Minneapolis Advisory Committee on People with Disabilities and suffers from cerebral palsy. He pleaded with the state legislature and city council to figure out a way to pay drivers more while maintaining the affordability of ride-hailing services.

“It’s important to keep ride costs low because most people with impairments have low incomes and use Uber and Lyft,” the speaker stated.

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