Lyft and Uber could ditch Minneapolis over a minimum-wage bill — and other cities could follow
Breakin’ out the old bike… Uber and Lyft could pump the brakes on their ride-hailing businesses in Minneapolis. Last week the city approved a gig-labor bill mandating a minimum wage of $0.51/minute and $1.40/mile for ride-hailing workers. That would put drivers’ pay in line with the city’s new $15/hour minimum wage. Minneapolis’s mayor is due to decide whether to veto the bill tomorrow, but may have a few reasons to hesitate:
If the bill goes through, Uber said it’ll remove cheaper UberX options for riders, leaving only its pricier premium rides like Uber Black and Uber SUV.
Lyft said it would exit Minneapolis on January 1 if the bill passes. The ride biz said the new minimum wage would double its fare prices in the city.
New news, old story… Gig unions have long battled with ride-hailing biggies for better pay and benefits like healthcare and PTO. Uber, Lyft, and other gig apps scored a major victory in March when a California court upheld Prop 22, which let drivers continue to be classified as independent contractors instead of employees. But the battle isn’t over: last month Uber and DoorDash sued NYC over its first-of-its-kind $18/hour minimum-wage law for delivery workers. Minneapolis and NYC join other urban hubs like San Francisco and Seattle in pushing for gig-labor protections.
A small wave can cause big ripples… While California’s state-wide proposal was struck down, city-by-city legislation can make a difference. Minneapolis’s minimum-wage bill (especially if it passes) could fuel the pay battle for gig workers elsewhere. Already, Chicago and Washington, DC, are said to be considering their own minimum-wage laws.