Ride-hailing companies Uber and Lyft announced they will continue operating in Minnesota after the state Legislature passed a compromise driver compensation bill Sunday, overriding a Minneapolis city measure to which the companies objected.
The bill, crafted by state House Democrats, establishes a $1.28 per mile and 31 cents per minute minimum wage for drivers, taking effect in January.
“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 a statement.
Lyft said the legislation balances “a new pay increase for drivers with what riders can afford to pay and preserve the service.”
The Minneapolis proposal would have established a $1.40 per mile and 51 cents per minute minimum — or $5 per ride, whichever is greater — excluding tips.
Gov. Tim Walz (D) said the compromise agreement passed Sunday will give drivers about a 20 percent raise.
“I’m grateful to our partners in the House and Senate DFL for coming together to get this done,” he said in a statement.
Twin Cities drivers have complained that ride-hailing services don’t pay enough, with car maintenance and gas cutting into already low fares.
“To put food on the table for our families,” Minneapolis-St. Paul driver Emmanuel Noah told The Associated Press. “That’s why we’re looking for a raise.”
Other cities, including New York and Seattle, have previously established pay minimums for food delivery workers, including Uber Eats drivers.
The Associated Press contributed.