Lyft and Uber will stay in Minnesota after driver pay compromise with lawmakers

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Lyft and Uber will stay in Minnesota after driver pay compromise with lawmakers
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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.

“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

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