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Uber and Lyft delay their plans to leave Minneapolis after officials push back driver pay plan

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Minneapolis News

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The ride-hailing companies Uber and Lyft said they will delay their planned exit from Minneapolis to July 1 after city officials decided Wednesday to push back the start of an ordinance that increases driver pay. The Minneapolis City Council voted unanimously to start the new pay plan on July 1 instead of May 1.

The Minneapolis City Council approved a two-month delay for new rules that would raise pay for ride hailing drivers. The rules were scheduled to take effect in May but now won’t take effect until July. FILE - A ride share car displays Lyft and Uber stickers on its front windshield in downtown Los Angeles, Jan. 12, 2016.

Under the ordinance, ride-hailing companies must pay drivers at least $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. Lyft said the city’s rate “will make rides too expensive for most riders, meaning drivers will ultimately earn less. This is unsustainable for our customers.”

 

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