Lyft and Uber say they could leave Minneapolis if the mayor signs a minimum wage bill for drivers

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Source: CNN

Lyft and Uber say they could leave Minneapolis if the mayor signs a minimum wage bill for drivers

By Jennifer Henderson and Ramishah Maruf, CNN
Updated 12:47 PM EDT, Fri August 18, 2023

New York CNN — Lyft and Uber threatened to stop doing business in Minneapolis after the city council adopted a new rule Thursday that would set a minimum wage for rideshare drivers.

In a 7-5 vote, the Minneapolis City Council passed an ordinance that includes a number of rideshare worker protections, including a minimum wage for Uber and Lyft drivers. Mayor Jacob Frey has the opportunity to veto the ordinance and has until next Wednesday, August 23, to do so.

The proposed ordinance mandates at least $1.40 per mile and $0.51 per minute within Minneapolis be paid to drivers. Minneapolis is debating the minimum wage as gig workers across the country are advocating for fair wages and job benefits. In recent years, states and cities have attempted to pass legislation regarding the growing “gig economy,” or freelance work through apps like Uber and Grubhub, but have generally met with fierce opposition.

On Tuesday, Lyft sent a letter to the council saying “Should this proposal become law, Lyft will be forced to cease operations in the City of Minneapolis on its effective date of January 1, 2024.”

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Read more: https://edition.cnn.com/2023/08/17/tech/minneapolis-rideshare-minimum-wage/index.html