Lyft will continue to serve the Minneapolis market until July 1 after the city council delayed by two months the start date of a new law that would raise the minimum pay for ride-hail drivers, the company confirmed. The company had threatened to pull out of the market on May 1.
Reuters reported that Uber also would continue service in the city until July 1, but the company did not immediately respond to a request for confirmation.
The council in March initially passed the measure, which would increase driver wages to the equivalent of the local minimum wage of $15.57 an hour. The companies would have to pay drivers at least $1.40 per mile and $0.51 per minute for a ride, or $5 per ride, whichever is greater, excluding tips.
“We are encouraged the Council is recognizing the flaws in their incredibly damaging ordinance,” Lyft said in a statement. “Given their actions today, we too will extend our services through to the new effective date of July 1. However, the fundamental facts remain the same: This ordinance will make rides too expensive for most riders, meaning drivers will ultimately earn less.”
As a compromise, “Lyft is willing to support the Minnesota Department of Labor and Industry study’s recommended $0.89 per mile and $0.487 per minute rates, which would increase current driver earnings by 17 percent while allowing us to continue to operate within the city,” the company said.
