In a recent turn of events, Uber Technologies Inc. UBER and Lyft Inc. LYFT have decided to delay their departure from Minneapolis, providing temporary relief to users who rely on their services.
What Happened: The two leading ride-hailing companies, Uber and Lyft, have extended their operations in Minneapolis until July 1, Reuters reported on Friday. This follows a Minneapolis City Council decision to postpone the enforcement of a new driver pay ordinance.
The ordinance, which mandates a minimum hourly wage of $15.57 for rideshare drivers, was originally set to take effect on May 1 but has now been pushed back to July 1 after a unanimous council vote.
This was in response to the council’s March decision, which followed protests by rideshare and delivery drivers on Valentine’s Day advocating for fair pay and working conditions.
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Why It Matters: The decision to stay in Minneapolis comes after significant backlash from both companies against the City Council’s March ruling. The ruling, which overrode Mayor Jacob Frey’s veto, would have affected approximately 10,000 workers, according to the companies’ statements in March.
Uber and Lyft had expressed their disappointment, emphasizing that the council ignored data suggesting the negative impact of the wage mandate. The companies warned that the new law would force them to cease operations, leaving many drivers without work.
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