Finding a trip around the twin cities might soon be harder than ever. Starting May 1st, ridesharing giants, Lyft and Uber, plan on ceasing operations in Minneapolis.
The cause of the withdrawal? A new minimum wage law for workers in gig economies.
New Laws For Gigworkers And Ridesharing
On March 15, the Minneapolis City Council voted to override a Mayoral Veto…
Allowing rideshare workers to be paid the city’s minimum wage of $15.57.
This move has split both the city as well as the giant companies it’s affecting.
In response to the legislation, Uber and Lyft have stated that starting May 1st, they will cease operations in the city.
They claim that this law will make business completely unsustainable and explode the price of ridesharing.
Not only will it make catching a ride almost twice as expensive…
But according to Uber…
This move could potentially put thousands of workers out of a job. The company stated that it’s…
“DISAPPOINTED THE COUNCIL CHOSE TO IGNORE THE DATA AND KICK UBER OUT OF THE TWIN CITIES, PUTTING 10,000 PEOPLE OUT OF WORK AND LEAVING MANY STRANDED.”
Besides the corporations affected, Mayor Jacob Frey is imploring the city to find a solution before the May deadline.
A City Divided
While he’s in favor of increasing the pay for gig workers…
Mayor Frey recognizes that hiking up wages will result in many jobs lost if these apps exit the city.
He’s stated…
“EVERYONE WANTS TO SEE UBER AND LYFT DRIVERS GET PAID MORE. BUT GETTING A RAISE DOESN’T DO A WHOLE LOT OF GOOD IF YOU LOSE YOUR JOB,”
The Mayor is arguing for a slightly smaller raise than the one the city council proposed. Both budgets increase the amount that drivers make…
Only the Mayor’s proposal is based on a study by Minnesota’s Labor Department…
Which reflects the standard minimum ridesharing workers should make.
Additionally, as for the workers themselves, this is a massive win.
Supporters of the legislation claim this is a major step forward for workers’ rights in the face of corporate greed.
One of the rideshare travelers and ordinance’s supporters, Jake Hay, stated:
“IF THEY’RE GOING TO CLAIM THAT THEY CAN’T SUSTAIN WHAT THEY’RE DOING NOW AND PAY THESE PEOPLE, THEY DON’T DESERVE TO BE AROUND ANYWAY.”
While it’s no secret that ridesharing apps, especially Uber, have been known for their exploitative practices…
It’s up to the city council to determine whether it’s the end of the road for these giant apps in Minneapolis.
Be Great,
GCTV Staff
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