Minneapolis Driver Pay Legislation Delayed to July 1

Lyft will proceed to serve the Minneapolis market till July 1 after the town council delayed by two months the beginning date of a brand new legislation that might increase the minimal pay for ride-hail drivers, the corporate confirmed. The corporate had threatened to drag out of the market on Might 1.

Reuters reported that Uber additionally would proceed service within the metropolis till July 1, however the firm didn’t instantly reply to a request for affirmation.

The council in March initially handed the measure, which might enhance driver wages to the equal of the native minimal wage of $15.57 an hour. The businesses must pay drivers at the least $1.40 per mile and $0.51 per minute for a trip, or $5 per trip, whichever is larger, excluding ideas.

“We’re inspired the Council is recognizing the failings of their extremely damaging ordinance,” Lyft stated in an announcement. “Given their actions right this moment, we too will prolong our companies by way of to the brand new efficient date of July 1. Nonetheless, the basic details stay the identical: This ordinance will make rides too costly for many riders, that means drivers will finally earn much less.”

As a compromise, “Lyft is keen to assist the Minnesota Division of Labor and Business examine’s advisable $0.89 per mile and $0.487 per minute charges, which might enhance present driver earnings by 17 % whereas permitting us to proceed to function inside the metropolis,” the corporate stated.

RELATED: Uber, Lyft Vow to Depart Minneapolis If Pay Legislation Enacted