Minneapolis, MN
End of the Road: Why Uber and Lyft Are Abandoning Minneapolis Over New Driver Pay Laws – View from the Wing
End of the Road: Why Uber and Lyft Are Abandoning Minneapolis Over New Driver Pay Laws
Uber and Lyft have announced that they’re leaving Minneapolis May 1, 2024 in response to new city rules on driver pay. Uber is clear this will mean no airport pickups or drop offs. Lyft’s statement leaves open some ambiguity about the airport, although if they continue with airport service it may be only for out of towners.
The Minneapolis City Council overrode the mayor’s veto to pass new rideshare rules requiring minimum driver pay of $1.40 per mile and $0.51 per minute while transporting passengers; guaranteeing a minimum pay of $5 per ride; and requiring pass-through of at least 80% of cancel fees.
This would be pay substantially higher than the local $15.57 minimum wage. The Mayor believes that $0.89 per mile and $0.49 per minute would achieve that level of pay. The per-mile requirement is 57% higher than this.
The path to profitability for Uber and Lyft has always been about depressing wages for gig workers.
If a company can’t afford to pay their drivers a livable wage, maybe that company doesn’t deserve to exist. pic.twitter.com/x3WAASr4K2
— Lee Hepner (@LeeHepner) March 15, 2024
This is a bad take. As the Mayor put it,
Everyone wants to see Uber and Lyft drivers get paid more. But getting a raise doesn’t do a whole lot of good if you lose your job.
People choose to drive Uber/Lyft because it’s more lucrative than their next-best option (sometimes within their scheduling constraints). This critic is dangerously close to saying that if someone can’t otherwise earn a living wage, that they don’t deserve to exist. Shocking.
Uber and Lyft left Austin where I live back in 2016, after the city passed a number of rideshare regulations. Fingerprint-based background checks got most of the coverage, but rules also carved out lucrative rides for festivals and other activities only for taxis. Other services like RideAustin, Fasten, and Wingz picked up the slack after a period in which rides of any kind were difficult to get and thousands of people had been put out of work. The city largely ignored its own rideshare rules to let these services scale. They were generally more expensive and had fewer drivers than Uber and Lyft.
The state of Texas passed its own comprehensive rideshare rules, trumping local efforts, in 2017 and Uber and Lyft returned – mostly squeezing out those companies that had serviced the city while they were gone.
It’s perfectly fair to criticize companies that pretended tipping was going to increase driver wages, when it simply displaced pay from Uber/Lyft. The introduction of tipping simply shifted where driver pay was coming from, it did not increase it which is part of why tipping norms are destructive.
And it’s also fair to critique companies that light VC money on fire, only to learn they eventually have to self-fund. It’s hard to make money selling a service like transportation where there’s a limit to how much passengers will pay, and an amount drivers need to earn, while still earning a margin.
These aren’t massively profitable companies. Lyft’s operating margin has ranged from -79.26% in Q3 2022 to -34.97% in Q1 2023. Lyft famously issued a mistaken press release, overstating expected margin growth. Their adjusted profit margin as a percentage of bookings is expected to be 2.1% this year, up from 1.6% in 2023. And then there’s Uber:
Is this “exploitation” in the room with us? https://t.co/dA1dXGnkDQ pic.twitter.com/xQaVf0TVli
— Max Weber (@max_oikonomikos) March 17, 2024
But people who chose to drive for Uber and Lyft, no matter how much you criticize those companies, were better off for having done so compared to their next best alternative. Deferring to the actual decisions people make in their lives is grossly underrated. The Minneapolis city rule means consumers and drivers take an L, while cab companies win (and do not appear to be subject to these new rules).
More From View from the Wing
Minneapolis, MN
Minneapolis grocer charged in $1.1 million SNAP fraud scheme
Food insecurity in Minnesota: SNAP cuts and rising demand
Minnesota food shelves are facing growing pressure as potential federal SNAP cuts, rising grocery prices and increased demand strain already limited resources. Some providers also report impacts tied to recent immigration enforcement activity, with families hesitant to seek assistance. Wendy Behm of ACBC Food Shelf joins to discuss how organizations are responding, efforts to combat food insecurity across the state, and what’s at stake during the current legislative session. Learn more at acbcfoodshelf.com.
MINNEAPOLIS (FOX 9) – A Minneapolis grocery store owner is facing a felony charge after investigators say he trafficked more than $1.1 million in SNAP benefits using other people’s EBT cards.
SNAP benefits trafficking investigation leads to felony charge
What we know:
According to criminal charges filed in Hennepin County Court, Abdidwahid Mohamed, owner of Minnesota Food Grocery LLC, is accused of using EBT cards registered to other people to purchase items like energy drinks and baby formula at Sam’s Club and Costco between March 8, 2021 and August 10, 2021. The goods were then resold at his store.
The complaint states law enforcement says they watched Mohamed make the purchases and tracked him returning directly to his store with the items. Video surveillance and GPS data confirmed the trips, and investigators say many of the EBT cardholders were out of the country or denied shopping at the stores Mohamed visited.
The complaint states, “Mohamed received $1,141,082 in EBT payments” during the period in question. The federal Supplemental Nutrition Assistance Program (SNAP) is designed to help low-income households buy food, with benefits issued through EBT cards that work like debit cards.
Wal-Mart team sparks investigation
The backstory:
The investigation began when Wal-Mart’s Global Investigation Team flagged suspicious EBT transactions at Sam’s Club locations in Minneapolis. The Minnesota Bureau of Criminal Apprehension (BCA) was contacted in May 2021, and surveillance of Mohamed followed.
The complaint states on Aug. 10, 2021, law enforcement executed search warrants at Mohamed’s store and vehicles. He was arrested at a Sam’s Club in Bloomington with an EBT card and a handwritten note containing a PIN number. Interviews with more than two dozen EBT cardholders revealed that many claimed their cards were lost or had never been used at the stores in question.
One woman admitted she had not shopped at Minnesota Food Grocery for more than a year-and-a-half after agreeing to let Mohamed use her EBT card.
The complaint states the offense “involved a high degree of sophistication or planning or occurred over a lengthy period of time.”
What’s next:
If convicted, Mohamed faces up to 20 years in prison or a $100,000 fine.
The Source: Information from a criminal complaint filed in Hennepin County District Court.
Minneapolis, MN
Truck driver dead after crash sends Metro Transit bus into home in south Minneapolis
It happened early Monday morning in Minneapolis.
One person is dead and another is hospitalized after an early-morning crash in south Minneapolis on Monday that sent a Metro Transit bus into a home.
It happened at around 4 a.m. at 10th Avenue South and East 38th Street, just a few blocks east of George Floyd Square.
A spokesperson for Metro Transit police tells 5 EYEWITNESS NEWS that a truck was speeding down 10th Avenue when it hit the back of the bus, ripping a tire off the bus and sending it into the front of a home.
The driver of that truck died, according to Metro Transit police, while the driver of the bus was taken to a hospital but is expected to be OK.
Officials say nobody besides the driver was on the bus at the time, and the home the bus hit was also empty at the time.
Investigators are still at the scene, working to clean up all of the debris and determine exactly what led up to the crash.
5 EYEWITNESS NEWS is at the scene and working to learn more. Download the KSTP app and follow 5 EYEWITNESS NEWS on social media for the latest updates.
Minneapolis, MN
Atlanta Dream survive thriller in Minneapolis, edge Lynx 91-90 to open 2026 WNBA season
The Atlanta Dream trailed by double digits, fought back twice and still needed Angel Reese’s game-saving block in the final seconds to survive.
Atlanta opened the 2026 WNBA season with a 91-90 victory over the Minnesota Lynx on Saturday night, powered by Allisha Gray’s 24 points, Te-Hina Paopao’s pull-up jumper with 12 seconds remaining, and a performance that left little doubt about what this team intends to do this season.
Reese’s block on Emese Hof’s layup attempt in the closing seconds sealed one of the most dramatic opening-night wins before 10,821 fans at Target Center.
When Minnesota pushed its advantage to 13 points in the second quarter and the Dream looked like they were in serious trouble, Allisha Gray took over. The veteran guard finished with a game-high 24 points on 7-of-18 shooting, going a near-perfect 9-of-11 from the free throw line to go along with eight rebounds, three assists and two steals.
Gray’s ability to get to the line and convert kept Atlanta within striking distance throughout a game that could have spiraled out of control multiple times. She scored 11 points in the third quarter alone as the Dream chipped away at Minnesota’s lead.
Rhyne Howard was equally important on both ends, finishing with 15 points, five assists and three steals. Jordin Canada ran the offense efficiently with 12 points and six assists, and Paopao added six points and four assists in a composed performance off the bench.
With Atlanta trailing 85-87 and the clock winding down, Naz Hillmon stepped back and drained a 22-foot three-pointer with 2:44 left to tie the game and silence the fans in the Target Center. It was the shot of the night, and arguably the play that won Atlanta the game.
Hillmon finished with 15 points on an efficient 6-of-10 from the field, adding seven rebounds in 33 minutes. She was the Dream’s most reliable scorer off the bench and delivered her best basketball when Atlanta needed it most.
Rookie Madina Okot also impressed in her WNBA debut, scoring eight points on 3-of-6 shooting with four rebounds in just 10 minutes, showing the poise and physicality that earned her a roster spot out of training camp.
Angel Reese’s first game in a Dream uniform was complicated. She shot 4-of-11 from the field, committed five turnovers and picked up a first-quarter technical foul that gifted Minnesota a free point. At one point in the first half, she missed three consecutive shots on the same possession.
But Reese also grabbed 14 rebounds, nine on the offensive glass, blocked three shots, came up with two steals, and made the most important play of the game when it mattered most. Her block on Hof’s layup in the final seconds was the kind of athletic, instinctive play that changes games and defines seasons.
That is the player Atlanta acquired this offseason. On opening night, in the most pressure-packed moment of the game, she showed exactly why.
Minnesota had every opportunity to win this game and couldn’t finish it. Olivia Miles finished with 21 points on 6-of-14 shooting and eight assists to go along with eight free throws made. Kayla McBride scored 20 points and hit the go-ahead three-pointer with 1:11 left that looked like it might be the dagger.
Courtney Williams added 14 points and six assists, and the Lynx shot 50 percent from the field, a number that should have been good enough to win.
But 15 turnovers and an inability to execute in the game’s final minute proved too costly. Minnesota had chances to put Atlanta away in the fourth quarter and couldn’t. The Dream made them pay every time.
Atlanta continues its opening road trip Tuesday against the Dallas Wings before returning home for the May 17 opener against the defending champion Las Vegas Aces at State Farm Arena. Minnesota hosts Atlanta again on May 27.
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