RESIDENTS in one state could be without Uber and Lyft by the end of this summer.
Ride-hailing companies threatened to leave if a proposed pay increase was approved.
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Things got complicated after Democratic-Farmer-Labor (DFL) lawmakers and city council members in Minneapolis, Minnesota, agreed to a statewide minimum wage for drivers, according to CBS affiliate WCCO.
The decided rate is reportedly higher than what data gathered by Minnesota officials would define a fair minimum wage.
It’s also lower than what the Minneapolis council approved earlier this year.
Uber and Lyft still apparently aren’t happy with the pay deal.
Both companies said they would still cease operations in the Midwest state by July 1.
Some, like DFL Majority Leader Jamie Long, argue that ridesharing brands won’t actually run away and leave potential customers and sales behind.
“I think they’re bluffing,” Long told the outlet.
“I believe they would stay if this passed.”
Eid Ali, president and founder of the Minnesota Uber and Lyft Drivers Association, said there would never be a pay raise that either company would agree to.
“I don’t see any end for Uber and Lyft, other than they’re going to say ‘We’re leaving’ and scare the people of Minnesota,” Ali fumed.
“We’re trying our best here to make sure we give everything we can to our people here in Minnesota.”
Some drivers also said the monetary increase is “better than nothing.”
“We don’t have anything right now,” said Mohamed, a driver in the Minneapolis area.
REQUIRED SERVICE
Many residents in the state are apparently nervous about the threat from Uber and Lyft, often relying on transportation services.
Megan Kaiser flew to Minnesota-St. Paul International Airport (MSP) this week and said the situation would be “stressful.”
Others, like resident Kong Yang, said they understand where drivers are coming from with the pay increase, but emphasized that many people need Uber and Lyft in the state.
Many drivers said they are almost certain the government will reach an agreement with Uber and Lyft to keep the companies in Minnesota following the proposed wage increase.
Uber said it is continually working with state officials to find a way to stay, according to WCCO.
Lyft also said in a statement that it supports a fair minimum wage, but argued that the increase confirmed Monday would make travel unaffordable for many.
Mohamed says he hopes companies realize drivers “have families to feed” and stay in Minnesota with the increased minimum wage.
For more related content, check out The US Sun’s coverage of Uber’s safety changes in two states where customers could see extra charges.
The US Sun also tells why Lyft’s CEO blamed himself after a “clerical error” turned into a devastating loss.
This story originally appeared on The-sun.com read the full story
