Topics
a la mode
AI
Amazon
Image Credits:Getty Images
Apps
Biotech & Health
clime
Image Credits:Getty Images
Cloud Computing
DoC
Crypto
Enterprise
EVs
Fintech
Fundraising
gadget
Gaming
Government & Policy
ironware
Layoffs
Media & Entertainment
Meta
Microsoft
Privacy
Robotics
security department
societal
Space
Startups
TikTok
Transportation
speculation
More from TechCrunch
effect
Startup Battlefield
StrictlyVC
Podcasts
Videos
Partner Content
TechCrunch Brand Studio
Crunchboard
Contact Us
Uber and Lyft equipment driver in Minnesota will see higher pay thanks to a deal between the state and the state ’s two bombastic ride - hail caller . The upshot : a new lawthat leave some tribute to drivers while place limits on state government .
The bill , which Governor Tim Walz hassupported publiclyand is carry to sign , stipulates that starting January 1 , 2025 , drivers will be entitled to pull in at least $ 1.28 per mile and $ 0.31 per minute . Those rate are somewhat in line with what astate studyon driver compensation recommended : between $ 0.89 and $ 1.207 per mile and $ 0.487 per second .
While the unexampled eyeshade ends a multi - month saga in which Uber and Lyft threatened to allow the state multiple times , it ’s unlikely to end arguments over who should set salary for gig thriftiness doer . Nor does it hand a victory to any one party . Instead , this web of compromises outline in the invoice gives a little bite to everyone — except perhaps to the passenger .
Josh Gold , Uber ’s senior director of public policy , told TechCrunch that while the company is happy to stay on operating in Minnesota and the deal gives it some pricing flexibility , Uber still take in the rate as too high .
“ rider and drivers are gon na sense the increment in rates and the decrement in demand that lead from that , ” said Gold .
Uber and Lyft have long used that lose - lose scenario to argue against raise pay or adding other protection . The party ’ lurch is n’t wrong — although it does disregard the benefits of raising pay and the value of other protection outline in the bill , such as fomite insurance and compensation for injuries while on the job .
Those very shelter must be paid for somehow . In New York City , where Uber and Lyft are required to contribute to the Black Car Fund , which allow drivers with worker ’s recompense , the 2.75 % levy on each menu come out of the rider ’s pocket .
Join us at TechCrunch Sessions: AI
Exhibit at TechCrunch Sessions: AI
The threat of higher passenger costs is the main reason Gov. Walz forbid a old variation of the government note . Walz claim at the time that it would have made Minnesota one of the most expensive state for drive - hailing .
Some local politicians are unhappy with Minnesota ’s new law because it also preempt Minneapolis — where 95 % of all taxi and ride - hail trips pass , according to the state’sDepartment of Labor and Industry — and other cities from enacting their own pay floor .
In March , Minneapolis ’ city council passed an ordinance guarantee driver earn a minimum rate of $ 1.40 per Roman mile and $ 0.51 per moment . Uber and Lyft opposed the placard , saying it would make it too expensive to run in the city . They imperil to leave by May 1 , 2024 , but then demurred , saying they ’d consider staying if the Minnesota legislature got involved . Which it did .
“ Any and all attempts to counteract local control are bad , ” posted Minneapolis Council vice president Aisha Chughtaion X. “ It ’s a Republican and incarnate tactic used around the country . check our Gov. Tim Walz cave to multibillion dollar corporations in insisting on preempting Minneapolis is gross . ”
In 2023 , Uber and Lyft collectively spent $ 220,000 lobbying in Minnesota , according tostate lobbying records .
The arrangement in the Minnesota legislative assembly comes as the gig worker fight continues to play out in California . The California Supreme Court will hear arguments Tuesday on theconstitutionality of Proposition 22 , the 2020 law that classified driver as independent declarer rather than employees .
The consequence of both sound processes will have implications for how the ride - hail companies operate across the country , what assort of pay and protections number one wood can expect , and how much passenger fares tolerate to increase .
