Uber and Lyft had previously threatened to withdraw from Minneapolis following the passage of an ordinance by its city council that aimed to increase driver pay.
However, Minnesota lawmakers have now brokered an agreement that ensures rideshare drivers receive higher pay rates while allowing both companies to continue operating fully in the state.
“We have reached an agreement with Uber and Lyft to establish a statewide rate of $1.28 per mile and 31 cents per minute,” stated DFL House Majority Leader Jamie Long during a late-night press conference on Saturday.
Long further explained, “When you consider this as a blended rate, it equates to a 20% increase in pay for drivers across Minnesota.”
This agreement concludes a year-long negotiation involving rideshare companies, the Minneapolis City Council, and the state legislature.
The companies had threatened to cease operations by July, following the legislature’s earlier proposal of a minimum wage bill for drivers.
Lawmakers aimed to find common ground after the Minneapolis City Council had already approved an ordinance setting pay rates at $1.40 per mile, which was 13 cents more than the state’s proposed rate.
