Rideshare company Lyft on Tuesday announced a new $5 minimum charge per ride for trips within the metro area.
Lyft sets $5 minimum charge per ride in Twin Cities metro
The change, which Uber implemented last year, is unlikely to end pressure from drivers and some elected officials to pay drivers more.
January 9, 2024 at 9:42PM
The same minimum was enacted by rival ride-hailing company Uber last year and is in line with a recommendation from a state task force.
However, the change is unlikely to quell calls for increased pay and protections for drivers by driver groups and elected officials who say drivers are underpaid and exploited.
Last year, state lawmakers approved a plan that went further in increasing pay for drivers, but it was vetoed by Gov. Tim Walz, who established the task force instead. A similar plan that also included a $5-per-ride minimum was approved by the Minneapolis City Council in August, but Mayor Jacob Frey vetoed it. He cited the unfinished work of the task force, which included drivers and representatives of the major ride-hailing companies, known as transportation network companies.
Last month, the task force completed its work but did not make recommendations on one of the most contentious issues: minimum pay rates that would effectively boost hourly wages for drivers by establishing minimum rates per minute and per mile.
At least one state lawmaker and several Minneapolis City Council members have said they plan to continue to push for such minimums to be codified in statute or ordinance.
The task force did recommend establishing the $5 minimum charge for rides that begin and end in the metro area.
Additionally on Tuesday, Lyft also announced it was launching a partnership with one of the most prominent groups representing drivers — the Minnesota Uber/Lyft Driver Association (MULDA) — to help navigate technical and disciplinary issues, including translating for East African immigrants and providing assistance in appealing their case if they get kicked off the platform.
"MULDA provides an important voice for its members and this collaboration is an opportunity for us to work on different issues facing the driver community. Lyft is excited to be moving forward with MULDA," Brent Kent, Lyft public policy manager director for the Midwest, said in a news release.
A representative for MULDA could not immediately be reached for comment.
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