What is the general conscience of the Uber/Lyft minimum wage increase // Minneapolis new rideshare service?

[Need4Camaro]

I am curious as per what locals think of this.

I agree that Uber/Lyft drivers are generally cheated by their respective companies. I used to do Uber. When the company first opened drivers were taking home about 2/3rds of the fares. Today it's about 1/3rd and they have to contend with inflation, rising fuel costs, maintences, ect.. generally with all expenses accounted for I pretty much had a tax free income as a Uber driver and even some tax equity to go towards my day job tax liability which helped.

But at the same time, I can't help but feel that MSP is doing this for other reasons than just Uber/Lyft Drivers.

Thoughts?

[Yosh01]

My opinion is that the city council has no business getting involved in private labor issues.

[Teak]

Originally Posted by Yosh01

My opinion is that the city council has no business getting involved in private labor issues.

True. But that would ignore the need for those council members to signal their innate virtue. Only they know how to solve the world's problems.

[slamont61]

Uber/Lyft can both leave, someone will take over anyways.

[Camden Northsider]

Meh... PEACE Uber and Lyft, it's not like there aren't plenty of other service options that continue to exist, not to mention plenty of entrepreneurial folks already working to take Uber/Lyft's place locally. Which is how capitalism is supposed to work-- why are we so quick to kowtow to these greedy corporations that want their cake and to eat it, too?

My take on Uber and Lyft's decision to leave: whiny, self-important, and punitive ('You don't get to tell us how to treat our personnel! Waaaa'). I feel bad for the folks losing an easy side hustle (those driving full-time will be able to find better jobs). But, outside of that and some whiny citizenry temporarily experiencing minor inconveniences, these corporations' departure will have no real substantive impacts to our area long-term.

Hopefully other cities take note of that and follow Mpls' example, thus forcing Uber and Lyft to decide whether they want to continue to exist as entities that pay decent wages. And perhaps Mpls should take a cue from the Uber and Lyft example and start teaming up with other cities to pass similar legislation.

[wamer27]

This is only Mpls, no other city. I got an email from Lyft weeks ago saying no rides into or leaving Mpls. Someone mentioned their buddy delivers pizza from Robbinsdale and each delivery into Mpls he is paid separately. Uber/Lyft could do this very same thing, pay their contractors only for minutes working within Mpls. I use Lyft weekly going into and leaving Mpls. If it goes away I’ll find another way, but if it’s go back to cabs, I won’t be spending my money in Mpls anymore. The city council is voting on something very soon about what is going on, many are asking the leave date be pushed back. I don’t believe they are leaving, it’s a bargaining chip to get riders to do their work to convince city council to cancel their plan.

A driver told me last week how Uber/Lyft makes all its money is surge pricing. He had a ride that person takes daily for work, the ride is $15 every single day. The last snowstorm the ride was $65, the driver was only given $5 extra for the trip.

[Hemlock140]

In Seattle the city passed a similar law for delivery drivers: Those gig workers earn 44 cents a minute and 74 cents a mile traveled, or a minimum of $5 per order. The App companies say this works out to at least $26.40 an hour (minimum wage in Seattle is only $19.97). DoorDash and Uber immediately added a $5 fee to every order placed through their apps, along with a notice that this fee was now a necessary cost of doing business in Seattle. The result is that people reduced their food deliveries, by as much as 30% in come cases due to the additional cost.


https://mynorthwest.com/3955454/seat...ig-worker-law/

https://komonews.com/news/local/seat...ers-lose-money

[TheGrandViking]

Uber/Lyft drivers have a very challenging calculation for their hourly wage because of the use of their own vehicle and the actual depreciation of that vehicle. The state did a study to determine the amount per minute and per mile to make $15-the amount the city of Minneapolis has established by law that an employer must pay to an employee. Currently, it appears that Lyft/Uber are not meeting the $!5 minimum wage the city requires. In order for the city to maintain the law, they needed to take this action. The state did a study on this that was highly criticized by Uber/Lyft at the time but the now Uber/Lyft want that to be the baseline. The council used a level at the per minute and per mile level that was higher than the state. I find this amusing.

Uber/Lyft are currently the dominant players in rideshare and have a duopoly. They came in in 2013 and quickly undercut the taxis (2000 cabs) at the time and became the dominant individual transportation company. I initially enjoyed the challenge to the taxis system because of their stranglehold on the system, but was not pleased to see one was replaced with another without a proper balance-currently their are around 40 taxis in Minneapolis.

Uber, during the 2015-2020 time period, spent 1 billion dollars on driverless research. But, due to the massive amount spent and bad optics, acquired a company specializing in driverless research (400 million) in order to obfuscate the continued effort to get rid of drivers. They posted their first profit after 10 years in the 4th quarter of 2023. They have been burning through cash to undercut the cab system and eventually get rid of the drivers with driverless tech. I am not opposed to driverless systems but their method to secure their duopoly.

Capitalism thrives on competition so breaking Uber/Lyft stranglehold is necessary. I would like to see competition with wages that don't create the Walmart worker (full time worker making just low enough to need public assistance to live). I think the rideshare is ripe for greater competition with different models, but I don't want to see a company using its dominant position in cash and market share to stifle better/other systems that are emerging or already exist. I think this opens a window or opportunity for some other rideshare ideas.

As to the council members motivation for this law, the members have maintained their reason as increasing wages for employees and upholding the city law. I also came across a member who said it was to increase competition. You seem to be alluding to some imagined or believed motivation, as to that, I have no idea.

[wamer27]

The leave Mpls date got extended to July 1st now.