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Lyft, Uber threaten exit of Minneapolis after city council forces them to pay drivers more

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Lyft, Uber threaten exit of Minneapolis after city council forces them to pay drivers more


MINNEAPOLIS (AP) — Lyft and Uber said they will cease operations in Minneapolis after the city’s council voted Thursday to override a mayoral veto and require that ride-hailing services increase driver wages to the equivalent of the local minimum wage of $15.57 an hour.

Lyft called the ordinance “deeply flawed,” saying in a statement that it supports a minimum earning standard for drivers but not the one passed by the council.

“It should be done in an honest way that keeps the service affordable for riders,” Lyft said. “This ordinance makes our operations unsustainable, and as a result, we are shutting down operations in Minneapolis when the law takes effect on May 1.”

Uber did not immediately respond to a request for comment, but news outlets reported that it issued a similar statement saying it would also stop service that day.

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Both companies promised to push for statewide legislation that would counter the Minneapolis ordinance, and state House Republicans proposed a bill Thursday that would preempt local regulations of ride-hailing services.

Lyft to lay off 13% of staff

The City Council first passed the measure last week in a 9-4 vote despite Mayor Jacob Frey’s promise to veto it. The measure requires ride-hailing companies to pay drivers at least $1.40 per mile and $0.51 per minute for the time spent transporting a rider — or $5 per ride, whichever is greater — excluding tips. In the event of a multi-city trip, that only applies to the portion that takes place within Minneapolis.

Critics of the bill say costs will likely spike for everyone, including people with low incomes and people with disabilities who rely on ride-hailing services. Supporters say the services have relied on drivers who are often people of color and immigrants for cheap labor.

“Drivers are human beings with families, and they deserve dignified minimum wages like all other workers,” Jamal Osman, a council member who co-authored the policy, said in a statement.

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“Today’s vote showed Uber, Lyft, and the Mayor that the Minneapolis City Council will not allow the East African community, or any community, to be exploited for cheap labor,” Osman added. “The Council chooses workers over corporate greed.”

Lyft agrees to $25 million settlement with shareholders over safety-related allegations

Democratic Gov Tim Walz, who vetoed a bill last year that would have boosted pay for Uber and Lyft drivers, told The Associated Press on Wednesday that he was concerned because so many depend on those services, including disabled people.

He said he believed the companies would pull the plug, “and there’s nothing to fill that gap.”

Walz added that he hopes the Legislature will seek a compromise that both includes fair pay for drivers and dissuades the companies from leaving.

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Seattle and New York City have passed similar policies in recent years that increase wages for ride-hailing drivers, and Uber and Lyft still operate in those cities.



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Minneapolis, MN

Minneapolis Ranked Among U.S. Cities With The Most People In Financial Distress

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Minneapolis Ranked Among U.S. Cities With The Most People In Financial Distress


MINNEAPOLIS — Minneapolis is ranked among the American cities with the most people in financial distress nationwide, according to a recent analysis by WalletHub.

The personal finance website, which defines financial distress as having a credit account in forbearance or with deferred payments, looked at the country’s 100 largest cities without data limitations across nine metrics, including average credit score, change in bankruptcy filings year-over-year, and share of people with accounts in distress.

Minneapolis came in 44th on the list, between Stockton, California, at 43rd and Fresno, California, at 45th, according to the ranking.

Nationwide, the cities with the most people in financial distress were Chicago at No. 1, Houston at No. 2 and Las Vegas at No. 3, the ranking said.

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“Getting out of the downward spiral of financial distress is no easy feat,” according to WalletHub analyst Chip Lupo.

“You may get temporary relief from your lenders by not having to make payments, but all the while interest will keep building up, making the debt even harder to pay off. People who find themselves in financial distress should budget carefully, cut non-essential expenses, and pursue strategies like debt consolidation or debt management to get their situation under control.”

Read more from WalletHub.





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Whitefish council creates proclamation in solidarity with city, citizens of Minneapolis

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Whitefish council creates proclamation in solidarity with city, citizens of Minneapolis


The Whitefish City Council in February presented and signed a proclamation expressing solidarity with the city and citizens of Minneapolis.

The proclamation states that Whitefish mourns the loss of life that occurred in Minneapolis and stands in solidarity with its residents.

It reaffirms the city’s commitment to equal treatment under the law and emphasizes that peaceful protest is a fundamental American right.

The proclamation was supported by five of the six council members.

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Mayor John Muhlfeld said the action was meant to reaffirm the city’s values.

“A mayoral proclamation that is supported by five of six City Council members supporting solidarity with the city and citizens of Minneapolis, Minnesota, and reaffirming our supportive, just, equal and welcoming community,” Muhlfeld said. “I think this is somewhat overdue. Our town’s been through a lot over the years, This is more importantly to reaffirm our values as a council with our community because we care deeply about you.”

Over the last year, Whitefish has faced criticism amid rising tensions surrounding the Department of Homeland Security.

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View the full proclamation below.



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Minneapolis, MN

City officials report less speeding at corners with traffic cameras in Minneapolis

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City officials report less speeding at corners with traffic cameras in Minneapolis


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