After threatening to withdraw their business from the state of Minnesota if a new minimum-wage bill went into effect, Lyft confirmed reports that the company had reached an agreement with state officials for a new minimum-wage rate that is less than the one proposed in the Minneapolis legislation that was due to go into effect July 1.
CNN reported that Uber also was part of the agreement, but the company did not immediately respond to a request for confirmation.
Rideshare drivers statewide will be paid $1.28 per mile and $0.31 per minute—or $5 per ride, whichever is greater—which will override the higher Minneapolis proposed rates of $1.40 per mile and $0.51 per minute. The new rates are to take effect in January, according to the AP.
“We have long supported a minimum earnings standard and increasing driver pay in smart, deliberate ways, which is why earlier this year we announced a new commitment where drivers will always make at least 70 percent of the weekly rider fares after external fees,” Lyft said in a statement. “This legislation builds on those efforts and marks an important compromise that allows Minnesota rideshare drivers to keep earning with Lyft. Through direct engagement with all stakeholders, we have found enough common ground to balance a new pay increase for drivers with what riders can afford to pay and preserve the service.”
