State Legislature Advances Plan to Increase Uber and Lyft Driver Pay in Minnesota

In a last-minute deal struck in the Minnesota Legislature, lawmakers have approved a plan to increase pay for Uber and Lyft drivers in the state, potentially preventing the ride-sharing companies from leaving the market. The plan, which was crafted by Democrats, aims to replace a minimum pay measure passed by the Minneapolis City Council that had prompted Uber and Lyft to threaten to pull out of the state’s biggest city.

Under the new agreement, drivers would be guaranteed a minimum pay rate of $1.28 per mile and 31 cents per minute, starting in January if the bill is passed. Uber has already indicated that it will continue operating in the state under these rates, while Lyft has yet to respond to questions about the deal.

Although the pay rates are lower than what drivers had hoped for, Marianna Brown, vice president of the Minnesota Uber/Lyft Drivers Association, expressed satisfaction with the compromise. Minnesota Governor Tim Walz also praised the deal, stating that it gives rideshare drivers a 20% raise and ensures the continued operation of these important services in the state.

The agreement comes after intense negotiations and pressure from both drivers and the companies themselves. With the looming deadline for lawmakers to pass bills before adjourning, the approval of this plan represents a significant victory for all parties involved.