## Uber and Lyft to Stay in Minneapolis After State Lowers Driver Pay Requirements
Illustration by Alex Castro / The Verge
Great news for ride-hailing users in Minneapolis! Uber and Lyft have announced that they will continue their operations in the city following the state legislature’s recent decision to approve a reduced minimum pay rate for drivers. This update was reported by the Minnesota Reformer and the StarTribune.
### The New Pay Structure
Starting January 1st, 2025, if the bill turns into law, drivers for Uber and Lyft in Minneapolis will be assured a minimum pay of $1.28 per mile and 31 cents per minute. This reshaped pay structure marks a significant alteration from the previously proposed rates.
### Previous Dispute Over Pay Rates
Earlier this year in March, Uber and Lyft had warned that they might have to cease operations in Minneapolis after city officials passed an ordinance that required the ride-hailing companies to pay drivers $1.40 per mile and 51 cents per minute while carrying a passenger. The ordinance was deemed „deeply flawed“ by Uber and Lyft as it was implemented before the state conducted a comprehensive study on how much drivers should be earning.
The contention primarily revolved around ensuring fair compensation for drivers while also maintaining affordability and accessibility for ride services users. The initial rate increase aimed to recognize and address the economic challenges faced by gig economy workers, however, the ride-hailing companies contended that such a decision was premature and could negatively impact their business models.
### Looking Forward
With the newly approved state rates, both Uber and Lyft seem ready to continue serving the Minneapolis area, ensuring that residents and visitors will still have access to convenient ride-hailing options. As January 1st, 2025 approaches, drivers can anticipate the new wage policies that aim to balance fair pay with the economic feasibility for these companies.
Stay tuned as more developments unfold regarding how this new legislation will impact both drivers and riders in the region. Meanwhile, Uber and Lyft users in Minneapolis can breathe a sigh of relief.
For detailed updates on this evolving story, be sure to follow local news outlets and stay connected with The Verge for comprehensive coverage.
source: https://www.theverge.com/2024/5/21/24161525/uber-lyft-stay-minneapolis-driver-pay-rates
