Plan to boost Uber and Lyft driver pay in Minnesota advances in state Legislature

A plan to boost pay for Uber and Lyft drivers in Minnesota has advanced in the state Legislature

Uber Lyft Minnesota (Copyright 2021The Associated Press. All rights reserved)

A plan to boost pay for Uber and Lyft drivers in Minnesota that lawmakers believe would prevent the companies from leaving the market advanced in the state Legislature on Sunday, hours before the deadline for lawmakers to pass bills before they adjourn.

The plan that gained approval in the House was crafted by Democrats to replace a minimum pay measure the Minneapolis City Council passed that prompted Uber and Lyft to threaten to leave the state's biggest city.

The agreement announced Saturday after a day of negotiations would set a minimum pay rate at $1.28 per mile and 31 cents per minute. Uber has said it will keep operating in the state under those rates. The bill would take effect next January if passed.

“While the coming price increases may hurt riders and drivers alike, we will be able to continue to operate across the State under the compromise brokered by the Governor,” Uber spokesperson Josh Gold said in an email to the Star Tribune.

Lyft representatives didn't immediately respond to emailed questions from The Associated Press about the deal.

The measure the companies objected to would have required them to pay drivers at least $1.40 per mile and 51 cents per minute — or $5 per ride, whichever is greater — excluding tips, for the time spent transporting passengers in Minneapolis.

Marianna Brown, vice president of the Minnesota Uber/Lyft Drivers Association, told the Star Tribune that even though the pay rates are lower than drivers hoped for, they were happy to see the deal come together.

Minnesota Gov. Tim Walz said in a post on the social platform X that the deal “gives rideshare drivers a 20% raise and keeps these important services operating in Minnesota. I’m grateful to our partners in the House and Senate DFL for coming together to get this done.”