Lyft and Uber say they will cease operations in Minneapolis after the city’s council voted Thursday to override a mayoral veto and require ride-hailing services to increase driver wages to the equivalent of the local hourly minimum wage of $15.57.

Lyft and Uber said they will cease operations in Minneapolis after the city’s council voted Thursday to override a mayoral veto and require that ride-hailing services increase driver wages to the equivalent of the local minimum wage of $15.57 an hour.

Lyft called the ordinance “deeply flawed,” saying in a statement that it supports a minimum earning standard for drivers but not the one passed by the council.

  • FederatedSaint@lemmy.world
    5·
    8 months ago

    I don’t know the economics, truly, but there are a LOT more expenses involved in running a large business like Uber on top of driver wages, such as technology service and hardware costs, programmers and central admin/customer service, rent or cost of buildings including utilities, insurance, taxes, fees, consulting and auditing, cybersecurity, legal, and probably quite a bit more I can’t think of. Running a business is friggin expensive.

    Definitely not defending paying workers less, just trying to explain why they still might not be in the black even in your scenario.