Minneapolis On Verge Of Forcing Lyft/Uber Out Of City

The Minneapolis City Council approved a measure on Thursday that would force rideshare companies like Uber and Lyft to increase the minimum wage for their drivers. Both companies have threatened to pull their business from the city if Mayor Jacob Frey signs off.

The ordinance passed in a 7-5 vote, so there are presumably not enough votes to override a veto from Frey.

Governor Walz issued his first veto last legislative session for similar legislation pushed through the Democrat-controlled legislature. He then signed an executive order forming a “task force” to “study” the issue going forward. 

It is all well and good to wish for good wages and employment safeguards for rideshare workers, but these regulations would make it impossible for these companies to make a profit in the city. Why should Uber and Lyft stick around if they will be losing money?

Jobs like this are not often used as a main source of income. Instead, these jobs are for people who have some spare time and need to make some extra money. If you chat with your driver, you will often hear about how this is a side job for them. 

I have had the opportunity to chat with many gig workers who work with services like Door Dash, a food delivery service. They say that it is easy to lose money if you’re not smart with which orders you take. They tell me that factors like mileage and tip amount must be considered before accepting an order. 

So sure, Uber and Lyft drivers may not make a huge profit if they are not selective with their rides or ride times. That is an issue that Uber and Lyft have to discuss internally. More government regulations here will simply eradicate the jobs altogether. 

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  • William Beck
    published this page in News 2023-08-18 10:24:03 -0500