Current Events > Minneapolis city council calls Uber and Lyft's bluff, sets rideshare pay hike

Topic List
Page List: 1, 2
Block_that_Kick
03/07/24 3:20:31 PM
#1:


It's okay, I didn't want to retire anyway. Who needs an IRA?

https://www.startribune.com/veto-proof-minneapolis-city-council-approves-rideshare-driver-pay-hike-frey-vows-veto/600349186/

Dismissing Uber and Lyft's vows to leave town and declaring a victory for a sector of underpaid workers, a veto-proof majority of the Minneapolis City Council Thursday approved a pay increase for rideshare drivers that Mayor Jacob Frey pledged to veto.

The vote was 9-4, enough to override the veto if that vote were to hold.

If the council overrides the veto later this month, both ride-hailing companies said Thursday they will cease operations in the city and perhaps the entire state on May 1, the day the pay increase will take effect. (The council changed the effective date to May 1 from April 1 Thursday.)

Uber and Lyft are the only two rideshare operations, also known as "transportation network companies," licensed to operate in Minneapolis, although several entities have indicated an interest in starting up in the city.

Supporters, including organized groups of drivers and some labor advocates, say the set of minimum pay scales and other protections, is the best way to ensure drivers earn the equivalent of the city's $15.57 hourly minimum wage. While driving for Uber or Lyft is often seen as a side gig, it has become the sole source of income for many drivers.

"If employers leave because they are paying sub-minimum wages and companies step in who pay minimum wages, I believe that's a win for our city," Council Member Jason Chavez said in supporting the ordinance amid the threats from companies.

Uber and Lyft, however, say the minimums are too high to make doing business here worthwhile. In order to make their margins, the companies say they would be forced to nearly double fares, resulting in so few riders that the business model would collapse.

The vote came on the eve of a state report that could explain which rates would equate to what actual earnings for drivers a tricky figure to nail down in the dynamic pricing universe of ridesharing. An attempt to delay the city council vote to await that report fell short Thursday.

In the past two days, Frey pleaded for the council to await the report and soften its demands to a level that he says Uber and Lyft would accept but still effectively nearly double the rates drivers earn. That didn't happen. The measure the council approved Thursday is similar to one the mayor vetoed last year.

Opponents of the plan include business leaders, bar and restaurant associations. Also concerned are some in the disability community, who note that many people unable to drive rely on rideshare companies, often with public aid vouchers, to travel to medical appointments, work, or to see friends and family.

In the past week, the companies have upped their pressure on the council to reject the higher-paying package. Uber took out ads on the home page of the Star Tribune and on local radio. Lyft sent letters to council members, appealing to their sense of economic justice by offering figures showing that the typical Minneapolis rider is working class.

On Wednesday evening, Lyft sent council members and the media an online petition, signed by some more than 300 Lyft drivers, opposing the plan. With thousands of drivers in the metro, it's unknown how the popularity of the plan approved by the council compares to Frey's less-ambitious counter-proposal.

During a three-month period in the summer of 2023, some 7,000 Uber drivers provided nearly 300,000 rides in the metro area, according to figures the company supplied.

Drivers react

Following the vote, drivers at City Hall cheered the council's decision.
"This is great! This is historic! Thank you council members," driver Farhan Badel shouted moments after the vote.

Matthew McGlory who has driven over 10,000 rides for Lyft and nearly as many for Uber, came out for the vote Thursday morning.

Even on a solid ride like the one he drove Wednesday morning before showing up to city council, McGlory earned less than half of the price the app shows to riders, with tip included.
He's worried the impending state study that nearly diverted the vote will include tips as income, masking what drivers actually make.

"What's going to be in this report? Why is it just coming out tomorrow," McGlory asked.

The amount of business travel, the Delta airport hub and the amount of large national events based in the city make him doubtful that the app-based ride services would truly leave Minneapolis.

"I think that is a poker bluff," McGlory said.

Seeing big companies make 60% percent of rides when the drivers are the ones providing the service just doesn't make sense, said Marianna Brown, who's driven for the apps for 5 years in New York and the 18 months she's lived in Minneapolis.

"Why should we let the big corporations make all the money when we as little people make nothing," Brown said. "When they show a billion dollars per year as their as their as their profits."

Brown showed screenshots on her phone of particularly lowball offers from the app one rider was offered $130 for a 4 hour and 45 minute drive, she said.

What drivers get

The plan approved Thursday guarantees a floor of $1.40 per mile and 51 cents per minute.

Frey had been pushing a plan that set a minimum payment of $1.20 per mile and 35 cents per minute.

The plan approved by the council also includes some of the following provisions:

  • $5 minimum payment for any ride
  • Annual increases in line with the city's minimum wage rules
  • If a ride is canceled while the driver is en route, the driver gets 80% of the fare
  • Restrictions on how money can be deducted from drivers' wages, and a prohibition for cutting into the drivers tips
  • Protections from retaliation
How they voted

Voting in favor were Council President Elliott Payne, Council Vice President Aisha Chughtai, and Council Members Robin Wonsley, Jeremiah Ellison, Jamal Osman, Katie Cashman, Andrea Jenkins, Jason Chavez and Aurin Chowdhury.

Voting against were Council Members Michael Rainville, LaTrisha Vetaw, Emily Koski and Linea Palmisano.

State context

The state study is in the context of a push to raised the pay and working standards of rideshare drivers statewide.

The Legislator passed a plan last year, but Gov. Tim Walz vetoed it amid opposition from Uber and Lyft.

Walz established a task force, including drivers and company representatives, to look into the matter and recommend a plan. They finished their work without specific rate recommendations but before a study by the state Department of Labor and Industry had concluded. It's that study that could come out as soon as tomorrow, the first in Minnesota to examine aggregate data from the rideshare companies.

Frey blasted the council for not waiting for that study.

"The statewide report is literally going to be released tomorrow," Frey said. "It's irresponsible to pass policy today when we'll have the data tomorrow.

"Supporters of the council's plan on Thursday noted that they could change the rates before they become effective May 1.

---
The truth will set you free, but first it will piss you off.
... Copied to Clipboard!
hockeybabe89
03/07/24 3:24:56 PM
#2:


I'm always told that every corporation will abandon America if they are forced to treat workers like human beings. I guess Minneapolis will be a test case.

---
https://card.psnprofiles.com/1/NIR_Hockey.png
she/her
... Copied to Clipboard!
legendary_zell
03/07/24 3:29:38 PM
#3:


Your complaint is with late stage capitalism and the gig economy, not with people trying to benefit workers. You should be able to have a stable income and retire, AND people should make a living wage from working for companies that exist to bypass labor laws and unions.

---
I gotta be righteous, I gotta be me, I gotta be conscious, I gotta be free, I gotta be able, I gotta attack, I gotta be stable, I gotta be black.
... Copied to Clipboard!
ScazarMeltex
03/07/24 3:32:52 PM
#4:


"If we have to pay a real wage then we can't make as much money". Tough shit.

---
Furthermore, The GOP is a Fascist Organization and must be destroyed
... Copied to Clipboard!
#5
Post #5 was unavailable or deleted.
s0nicfan
03/07/24 3:40:53 PM
#6:


For full time ride share drivers in the state, you might need this soon:
https://www2.minneapolismn.gov/business-services/licenses-permits-inspections/business-licenses/vehicles/taxis/taxicabs/

---
"History Is Much Like An Endless Waltz. The Three Beats Of War, Peace And Revolution Continue On Forever." - Gundam Wing: Endless Waltz
... Copied to Clipboard!
kelemvor
03/07/24 4:33:32 PM
#7:


Is there any kind of app (like Uber/Lyft) that coordinates with local, independent taxi services and just charges a small percentage or subscription to the driver? That way the actual driver can set their own fares and negotiate with the clients in the way they want to conduct their business while the app developers get a small cut as a finders fee or something.
... Copied to Clipboard!
xGhostchantx
03/07/24 4:37:17 PM
#8:


hockeybabe89 posted...
I'm always told that every corporation will abandon America if they are forced to treat workers like human beings. I guess Minneapolis will be a test case.

They won't. There's just too much money to be made. The corporate equivalent of "if you raise our taxes people won't bother trying to make more money"

no, they won't.

---
Tiw - Min scild, min sweord
Woden - Se ALLFAEDER he is, naes hwitra manna anra
... Copied to Clipboard!
hereforemnant
03/07/24 4:38:34 PM
#9:


hockeybabe89 posted...
I'm always told that every corporation will abandon America if they are forced to treat workers like human beings. I guess Minneapolis will be a test case.

... Copied to Clipboard!
Block_that_Kick
03/07/24 4:54:26 PM
#10:


kelemvor posted...
Is there any kind of app (like Uber/Lyft) that coordinates with local, independent taxi services and just charges a small percentage or subscription to the driver? That way the actual driver can set their own fares and negotiate with the clients in the way they want to conduct their business while the app developers get a small cut as a finders fee or something.

Well, thats the way its supposed to work. Uber and Lyft say that their drivers are contractors. If that is the case, then the drivers should be able to set their own prices at their own financial risk, and Uber and Lyft are merely the platform to provide those services.

But Uber and Lyft do not allow that to happen, and they never have.

---
The truth will set you free, but first it will piss you off.
... Copied to Clipboard!
ClayGuida
03/07/24 4:55:29 PM
#11:


Yes. Always call their bluff. California has done a great job doing this over the last 20 years, essentially dictating the market time and time again.

---
lolAmerica
... Copied to Clipboard!
hockeybabe89
03/07/24 4:58:11 PM
#12:


xGhostchantx posted...
They won't. There's just too much money to be made. The corporate equivalent of "if you raise our taxes people won't bother trying to make more money"

no, they won't.
Yeah, a business is never gonna actually stick to "I'd rather make no money than not make all the money"

---
https://card.psnprofiles.com/1/NIR_Hockey.png
she/her
... Copied to Clipboard!
Block_that_Kick
03/07/24 5:08:54 PM
#13:


ClayGuida posted...
Yes. Always call their bluff. California has done a great job doing this over the last 20 years, essentially dictating the market time and time again.

Thats what one of the people the StarTribune interviewed said. There is way too much money to be made in this region to pull out. Minneapolis-St. Paul has major events year round and MSP is one of the busiest airports in the country.

I hope hes right.

---
The truth will set you free, but first it will piss you off.
... Copied to Clipboard!
ClayGuida
03/07/24 5:11:08 PM
#14:


Block_that_Kick posted...
Thats what one of the people the StarTribune interviewed said. There is way too much money to be made in this region to pull out. Minneapolis-St. Paul has major events year round and MSP is one of the busiest airports in the country.

I hope hes right.
Small town Texas 150 miles from Dallas couldn't do this, but if you've got a sports team, chances area you can dictate how businesses operate, because they want the 1.5 million customers in your area.

---
lolAmerica
... Copied to Clipboard!
xGhostchantx
03/07/24 5:12:39 PM
#15:


hockeybabe89 posted...
Yeah, a business is never gonna actually stick to "I'd rather make no money than not make all the money"

Exactly. It's the most transparent bluff in the world.

---
Tiw - Min scild, min sweord
Woden - Se ALLFAEDER he is, naes hwitra manna anra
... Copied to Clipboard!
SaikyoStyle
03/07/24 5:14:35 PM
#16:


Good. The money cannot be allowed to have everything it wants at every turn.

---
Taxes, death, and trouble.
Brunt/Gaila 2024. Make Ferenginar Great Again!
... Copied to Clipboard!
streamofthesky
03/07/24 5:25:49 PM
#17:


Block_that_Kick posted...
Supporters, including organized groups of drivers and some labor advocates, say the set of minimum pay scales and other protections, is the best way to ensure drivers earn the equivalent of the city's $15.57 hourly minimum wage. While driving for Uber or Lyft is often seen as a side gig, it has become the sole source of income for many drivers.

What drivers get

The plan approved Thursday guarantees a floor of $1.40 per mile and 51 cents per minute.

Frey had been pushing a plan that set a minimum payment of $1.20 per mile and 35 cents per minute.

The plan approved by the council also includes some of the following provisions:

* $5 minimum payment for any ride
* Annual increases in line with the city's minimum wage rules
* If a ride is canceled while the driver is en route, the driver gets 80% of the fare
* Restrictions on how money can be deducted from drivers' wages, and a prohibition for cutting into the drivers tips
* Protections from retaliation

$0.51 per min x 60 min/hr = $30.60 per hour, just from the fucking per-minute portion, never mind the $1.40 per mile that's in addition to that, you absolute fucking clowns.
... Copied to Clipboard!
mystic_belmont
03/07/24 5:29:24 PM
#18:


streamofthesky posted...
$0.51 per min x 60 min/hr = $30.60 per hour, just from the fucking per-minute portion, never mind the $1.40 per mile that's in addition to that, you absolute fucking clowns.

That sounds great.

---
"Freedom was meaningless without ownership and control over one's own body" -Tera Hunter 'Joy My Freedom'
[Evil Republican] 3DS FC: 5429-7297-4842
... Copied to Clipboard!
Block_that_Kick
03/07/24 5:32:45 PM
#19:


streamofthesky posted...
$0.51 per min x 60 min/hr = $30.60 per hour, just from the fucking per-minute portion, never mind the $1.40 per mile that's in addition to that, you absolute fucking clowns.

It doesnt work that way. The clock doesnt start until the passengers are in the car. They dont get paid on the way to pick the passenger up. You can reasonably get about 2 1/2 rides per hour, so really youre looking at about $14-$15 per hour with time. Still a hefty pay raise on pay per minute.

---
The truth will set you free, but first it will piss you off.
... Copied to Clipboard!
Smashingpmkns
03/07/24 5:41:42 PM
#20:


If you can't afford you pay your employees minimum wage then you can't afford to operate a business.

---
http://i.imgur.com/x04tPRZ.jpg
http://i.imgur.com/t7T392I.jpg
... Copied to Clipboard!
streamofthesky
03/07/24 5:41:54 PM
#21:


Block_that_Kick posted...
It doesnt work that way. The clock doesnt start until the passengers are in the car. They dont get paid on the way to pick the passenger up. You can reasonably get about 2 1/2 rides per hour, so really youre looking at about $14-$15 per hour with time. Still a hefty pay raise on pay per minute.

And the vast majority don't get paid for driving to their jobs. Some crazy people commute like 2 hours each way. *shrug*
I have no idea why an Uber driver would drive (for example) 30 miles just to do a 20 mile drive, you'd think they'd pass on such requests and let someone closer handle it.

In any case, if the concern really was that the companies take too large a % of the fares compared to drivers, why not just mandate that "drivers must receive at least 70% of all fares as pay" or something?
... Copied to Clipboard!
ClayGuida
03/07/24 5:43:05 PM
#22:


streamofthesky posted...
And the vast majority don't get paid for driving to their jobs.
Most jobs aren't also 15 minutes.

---
lolAmerica
... Copied to Clipboard!
#23
Post #23 was unavailable or deleted.
hyperpowder
03/07/24 6:10:54 PM
#24:


Whats stopping drivers from milking time/miles?

---
Whoever beats my score I will give them a $10 PSN or Live card:
https://www.youtube.com/watch?v=RpiorAx40GY
... Copied to Clipboard!
Mizznox
03/07/24 6:19:34 PM
#25:


hyperpowder posted...
Whats stopping drivers from milking time/miles?
Customers getting upset that they're wasting time, leading to worse tips and reviews? And even if not, I doubt that milking extra time/miles like that is going to be better than just finishing and finding another fare.

---
https://i.imgur.com/qUAL3fG.gifv
... Copied to Clipboard!
TheGoldenEel
03/07/24 6:21:30 PM
#26:


[LFAQs-redacted-quote]

Did they?

isnt the core idea just taxis, but fucking everyone over in the process?

---
BLACK LIVES MATTER
Games: http://backloggery.com/wrldindstries302 \\ Music: http://www.last.fm/user/DrMorberg/
... Copied to Clipboard!
Prismsblade
03/07/24 6:22:57 PM
#27:


Mizznox posted...
Customers getting upset that they're wasting time, leading to worse tips and reviews? And even if not, I doubt that milking extra time/miles like that is going to be better than just finishing and finding another fare.
It depends, they could probably exploit the fuck out of a drunk party from the bar for a good while. Or utilize the 2-3rd fastest routes towards the destination.

Iver the course of weeks, months or a year it would add up.

---
3DS FC:3368-5403-9633 Name: Kaizer
PSN: Blackkaizer
... Copied to Clipboard!
ClayGuida
03/07/24 6:28:54 PM
#28:


Prismsblade posted...
It depends, they could probably exploit the fuck out of a drunk party from the bar for a good while. Or utilize the 2-3rd fastest routes towards the destination.

Iver the course of weeks, months or a year it would add up.
Just like anyone could exploit any situation.

---
lolAmerica
... Copied to Clipboard!
Block_that_Kick
03/07/24 6:34:59 PM
#29:


hyperpowder posted...
Whats stopping drivers from milking time/miles?

That is a very effective way to be quickly deactivated from the app.

---
The truth will set you free, but first it will piss you off.
... Copied to Clipboard!
#30
Post #30 was unavailable or deleted.
voldothegr8
03/07/24 7:01:16 PM
#31:


Things are going to come full circle. Uber/Lyft become the new cab companies and become unreliable and expensive, something else will rise to make rides cheap again, repeat.

---
THE Ohio State: 11-2 | Las Vegas Raiders: 8-9
... Copied to Clipboard!
Prismsblade
03/07/24 7:02:40 PM
#32:


ClayGuida posted...
Just like anyone could exploit any situation.
okay, but what are you getting at here? The above stated isnt possible on current Uber/lyft.

---
3DS FC:3368-5403-9633 Name: Kaizer
PSN: Blackkaizer
... Copied to Clipboard!
ClayGuida
03/07/24 7:06:09 PM
#33:


Prismsblade posted...
okay, but what are you getting at here? The above stated isnt possible on current Uber/lyft.
The only thing that changes in either scenario is that Ride Sharing billionaires have to pay their labor.

Customers still want to get to their location in a timely manner.

---
lolAmerica
... Copied to Clipboard!
Block_that_Kick
03/07/24 7:13:01 PM
#34:


[LFAQs-redacted-quote]


In my early days of Uber, I picked up a college woman going to a concert. She said she first called a cab company and they said that could get to her in about 45 minutes. She downloaded the Uber app and I showed up in less than five minutes. Couldnt believe how convenient it was.

---
The truth will set you free, but first it will piss you off.
... Copied to Clipboard!
Prismsblade
03/07/24 7:16:22 PM
#35:


ClayGuida posted...
The only thing that changes in either scenario is that Ride Sharing billionaires have to pay their labor.

Customers still want to get to their location in a timely manner.
Customers want cheap fares annd not getting scammed above anything else. They dont actually care about the mustache twirling billionaire behind the scenes.

---
3DS FC:3368-5403-9633 Name: Kaizer
PSN: Blackkaizer
... Copied to Clipboard!
voldothegr8
03/07/24 7:16:28 PM
#36:


Block_that_Kick posted...
In my early days of Uber, I picked up a college woman going to a concert. She said she first called a cab company and they said that could get to her in about 45 minutes. She downloaded the Uber app and I showed up in less than five minutes. Couldnt believe how convenient it was.
Yeah too many young bleeding hearts here don't remember the times when taxi service outside the mega cities was absolute shit, and way too fucking expensive. And even in the mega cities the service wasn't great.

---
THE Ohio State: 11-2 | Las Vegas Raiders: 8-9
... Copied to Clipboard!
TheGoldenEel
03/07/24 7:16:55 PM
#37:


[LFAQs-redacted-quote]

I live in a smaller city, but we had a ride sharing cab company (with actual employees) that functioned basically exactly like Uber, and even had an app, before uber. You would call or request a cab via app, and then they would arrive at some point in the near future, and take you to your destiination. Charges were zone based, and it was $5+$1 per zone you traveled through, and it was a shared service so they may or may not have picked up other people along the way

that cab company is now out of business, because Ubers entire model was undercutting cab companies becaus they didnt have to pay fair wages and had big tech people funding them to operate at a loss in the beginning

---
BLACK LIVES MATTER
Games: http://backloggery.com/wrldindstries302 \\ Music: http://www.last.fm/user/DrMorberg/
... Copied to Clipboard!
thronedfire2
03/07/24 7:17:29 PM
#38:


Block_that_Kick posted...
In my early days of Uber, I picked up a college woman going to a concert. She said she first called a cab company and they said that could get to her in about 45 minutes. She downloaded the Uber app and I showed up in less than five minutes. Couldnt believe how convenient it was.

and the only thing she had to do was get in a car with a totally unvetted stranger.

---
I could see you, but I couldn't hear you You were holding your hat in the breeze Turning away from me In this moment you were stolen...
... Copied to Clipboard!
Block_that_Kick
03/07/24 7:22:29 PM
#39:


thronedfire2 posted...
and the only thing she had to do was get in a car with a totally unvetted stranger.

We arent unvetted. Thats a load of shit.

---
The truth will set you free, but first it will piss you off.
... Copied to Clipboard!
DrizztLink
03/07/24 7:23:20 PM
#40:


thronedfire2 posted...
and the only thing she had to do was get in a car with a totally unvetted stranger.
As opposed to the cabbie?

---
He/Him http://guidesmedia.ign.com/guides/9846/images/slowpoke.gif https://i.imgur.com/M8h2ATe.png
https://i.imgur.com/6ezFwG1.png
... Copied to Clipboard!
ClayGuida
03/07/24 7:24:39 PM
#41:


Prismsblade posted...
Customers want cheap fares annd not getting scammed above anything else. They dont actually care about the mustache twirling billionaire behind the scenes.
What's this have to do with customers being taken for long rides?

It's as if you don't actually have a point.

---
lolAmerica
... Copied to Clipboard!
#42
Post #42 was unavailable or deleted.
#43
Post #43 was unavailable or deleted.
TheGoldenEel
03/07/24 7:36:56 PM
#44:


[LFAQs-redacted-quote]

To be clear, they had been around for decades when Uber put them out of business. It was one of the citys major cab companies

the point is Uber didnt really invent anything, other than exploiting loopholes to undercut their competition by not paying their employees fair wages

---
BLACK LIVES MATTER
Games: http://backloggery.com/wrldindstries302 \\ Music: http://www.last.fm/user/DrMorberg/
... Copied to Clipboard!
#45
Post #45 was unavailable or deleted.
voldothegr8
03/07/24 7:44:02 PM
#46:


TheGoldenEel posted...
the point is Uber didnt really invent anything, other than exploiting loopholes to undercut their competition by not paying their employees fair wages
Not employees, contractors. It's gig work. It was also never promoted to be a career, but a side hustle for extra cash. There's nothing wrong with contract work if a person doesn't want the ball and chain of benefits.

---
THE Ohio State: 11-2 | Las Vegas Raiders: 8-9
... Copied to Clipboard!
Prismsblade
03/07/24 7:52:23 PM
#47:


ClayGuida posted...
What's this have to do with customers being taken for long rides?

It's as if you don't actually have a point.
As Ive mentioned twice already. Not getting scammed

---
3DS FC:3368-5403-9633 Name: Kaizer
PSN: Blackkaizer
... Copied to Clipboard!
SF_Okami
03/07/24 8:00:07 PM
#48:


I have known people who do drives and they build up a clientele and then just drive privately for the people they know with no Lyft or Uber as the middleman. Only on days where they have no one to drive do they go back to the app. That would be the best bet for making money anyway.

---
~Bird Pokemon Master~
Latest Pickup: YEEZY PODS
... Copied to Clipboard!
ClayGuida
03/07/24 8:12:06 PM
#49:


Prismsblade posted...
As Ive mentioned twice already. Not getting scammed
How would they get scammed?

---
lolAmerica
... Copied to Clipboard!
#50
Post #50 was unavailable or deleted.
Topic List
Page List: 1, 2