Are Uber and Lyft Right In Their Threat To Leave Minneapolis?

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I founded ClariNet, the world's first internet based business, am Chairman Emeritus of the Electronic Frontier Foundation, and a fellow of the Foresight Institute. My current passion is self-driving vehicles and robots.

A fascinating battle is underway between the city of Minneapolis and the ridehail companies Uber and Lyft, after the city council passed a veto-proof version of a resolution to mandate prices for ridehail that the city says guarantee a minimum wage, but the companies say mandates too high a rate. They mayor previously vetoed the bill, and now the state is considering superseding it, and both Uber and Lyft have said they will halt service in the city if the bill comes into force.

There are state bills being proposed that set a similar rate to the city bill, and another minority bill which simply forbids the city from regulating the price. The study also examined the expenses of driving, in particular the costs of operating the car, including gasoline, insurance and depreciation. Here, the TNCs do exploit the fact that many drivers are not really aware of these costs other than gasoline. As such, they imagine their costs are lower than they really are. They worked this out at around 64 cents/mile, though include 4 cents for cell phone, something most drivers would pay the same for anyway.

One option would be if some type of gig-work existed that consisted of short tasks, easily interrupted, which could be done on a phone or laptop while sitting in a car. Ideally a modest-skilled job, but there could be jobs that made use of the skills of particular drivers. Jobs like handling customer service emails, or any other task that can be done as time is available, and which can be paused when a fare comes in.

 

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