Uber and Lyft are Quitting Minneapolis Over a Driver Pay Increase
upstart writes:
Uber and Lyft are quitting Minneapolis over a driver pay increase:
Uber and Lyft say they're ending services in Minneapolis over a city-mandated driver pay increase. The city council pushed through the measure to bring driver pay closer to the local minimum wage of $15.57 an hour.
[...] However, Uber and Lyft say they'll end services in the city before the pay rise takes effect on May 1. Lyft says the increase is "deeply flawed," citing a Minnesota study indicating that drivers could meet the minimum wage and still cover health insurance, paid leave and retirement savings at lower rates of $1.21 per mile and 49 cents per minute. "We support a minimum earning standard for drivers, but it should be done in an honest way that keeps the service affordable for riders," spokesperson CJ Macklin told The Verge.
An Uber spokesperson told the publication that the company was disappointed by the council's choice to "ignore the data and kick Uber out of the Twin Cities," putting around 10,000 drivers out of work. They noted Uber's confidence that by working with drivers, drivers and legislators, "we can achieve comprehensive statewide legislation that guarantees drivers a fair minimum wage, protects their independence and keeps rideshare affordable."
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