Uber and Lyft had had this oddball “cat and mouse” game with cities and countries for years. They only want their drivers to be seen in a particular way, paid a particular way, the companies only want to be taxed a certain way, etc. And if they refuse to follow the rules of a certain location, they either leave, refuse to offer drivers there, or sue.
Over the years, this has happened in, along other countries, Australia, Bangladesh, Brussels, Brazil, Bulgaria, China, Denmark, Hungary, Indonesia, Morocco, the Netherlands, South Korea, Turkey and Thailand, among others. In the U.S., there have been issues in California (San Francisco), Oregon (Portland), Texas (Austin) and Virginia, among others. And in MANY places, there have been issues arising between ride sharing and taxi companies.
Minneapolis has been the latest place to have issues with Uber and Lyft.
The rate would ensure that drivers were paid the equivalent of the city’s minimum wage of $15.57 per hour. That was too much for the ride sharing giants. Awwww.
However in a news conference earlier this week, representatives from Minneapolis-St. Paul International Airport and the hospitality industry said the move to require the new pay scale by May 1st would be near-impossible at such a late date. They needed more time for competing rideshare startups that were willing to pay drivers a fair amount to get a chance to get licensed and recruit drivers.
With that, The Minneapolis City Council voted unanimously to implement the ordinance on July 1 instead of May 1. And with THAT, Uber and Lyft said they’d delay their plans to leave the market until then, as well.
This gives other companies more time to get started and established while Lyft and Uber were still in the area. It also gives Minnesota lawmakers more time to consider passing statewide rules on pay rates for ride-hailing drivers.
So at least through July 1, Uber and Lyft will remain in Minneapolis.
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