Uber, Lyft Drivers Get 20% Pay Raise, Strong Insurance In Minnesota

Minnesota's government has reached an agreement with rideshare companies Uber and Lyft to establish minimum wage standards for drivers. The agreement is the result of a year-long negotiation process between Democratic state officials and the rideshare companies.

AP
Representative image Photo: AP
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Government officials in Minnesota announced Saturday that they have reached an agreement with Uber and Lyft to establish minimum wage standards for drivers.

This agreement marks the resolution of nearly a year-long negotiation process between Democratic state officials and the two rideshare companies. The negotiations were prompted by a proposed Minneapolis ordinance aimed at providing increased worker protections to rideshare drivers.

Initially adopted in August 2023, the proposed ordinance sought to ensure fair pay for contract workers, including those working for digital platforms like DoorDash, Instacart, Uber, and Lyft. It mandated a minimum payment of $1.40 per mile and $0.51 per minute for drivers.

However, Lyft and Uber had threatened to cease operations in Minneapolis if the ordinance was enforced. In response, state lawmakers engaged in discussions to find a compromise with the companies before a looming July 1 deadline.

Democratic Senate Majority Leader Erin Murphy highlighted the balance needed to address the needs of both employees and the residents who depend on rideshare services for transportation.

In response to the agreement, Uber's policy director Josh Gold expressed appreciation for the thousands of riders and drivers who voiced their concerns to legislators. “We applaud the tens of thousands of riders & drivers who sent close to 100,000 emails to legislators — your voices were heard. 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,” Gold said in a statement.

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